W0 O1/73693
`
`PCT/IL0l/00155
`
`17/39
`
`FIG 8B
`
`SENSOR
`
`CPU
`
`1004
`
`
`1000
`
`1006
`
`MEMORY
`
`COMMUNICATOR
`
`VEHICLE
`
`DATABASE
`
`RECEIVER/
`
`TRANSCEIVER
`
`1314
`
`-..........................................................................................................................................................................................................................,
`
`BILLING
`
`1318
`
`Page 001523
`
`

`
`W0 01/73693
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`PCT/IL01/00155
`
`18/39
`
`1404
`
`DISPLAY
`
`GPS
`
`1102
`
`CPU
`
`1100
`
`1106
`
`COMMUNICATOR
`
`
`
`RECEIVER /
`TRANSCEIVER
`
`
`
`1408
`
`I\/[EMORY
`
`
`
`
`COMMUNICATOR
`
`1412
`
`RECEIVER /
`TRANSCEIVER
`
`INTERMEDIATE STORAGE
`ANDCOMMUNICATIONUNIT
`
`
`mo
`
`W4
`
`1416
`
`DATABASE
`
`BILLING
`
`1418
`
`Page 001524
`
`

`
`W0 01/73693
`
`19/39
`
`
`V
`
`PCT/IL01/00155
`
`FIG 9A
`
`
`
`IS VEHICLE
`900 BEING
`
`
`
`_
`
`OPERATED?
`
`YES
`
`
`
`DETERMINE START TIME
`OF OPERATION
`
`STORE START TIME IN
`
`MEI\/IORY 904 OF VEHICLE 900
`
`
`
`
`
`IS VEHICLE
`
`900 STILL
`
`
`
`OPERATING?
`
`NO
`
`DETERMINE STOP TIME
`
`OF OPERATION
`
`STORE STOP Tux/1EjEE~I 00
`
`MEMORY9°40F VEHI
`
`9
`
`
`
`
`
`
`
`1?“ ‘NSIvMflI3TS(S::3GI'Efi OSHE
`
`TO INTERMEDIATE
`STORAGEAND
`
`
`
`
`
`COMMUNICATIONUNIT
`
`TRANSMIT COIVIPOSITE
`
`
`MESSAGE TO CENTRAL
`
`
`
`UNIT 910
`
`Page 001525
`
`

`
`W0 01/73693
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`PCT/IL0l/00155
`
`20/39
`
`FIG 9B
`
`
`
` IS VEHICLE
`1000 BEING
`
`OPERATED?
`
`
`YES
`
`DETERMINE THE START
`
`TIME OF OPERATION
`
`STORE START TII\/IE IN
`
`1\/IEMORY1004 OF VEHICLE 1000
`
`
`
`IS VEHICLE
`
`1000 STILL
`
`
`
`OPERATING?
`
`
`NO
`
`DETERMINE THE STOP
`
`TIIVIE OF OPERATION
`
`STORE STOP TIME IN
`
`MEMORY 1004 OF VEHICLE 1000
`
`TRANSMIT COIVIPO SITE
`MESSAGE TO CENTRAL
`
`UNIT 1010
`
`Page 001526
`
`

`
`WO 01/73693
`
`PCT/IL01/00155
`
`
`
`IS VEHICLE
`
`I 100 BEING
`
`OPERATED?
`
`
`
`
`
`YES
`
`DETERMINE THE START
`
`TIME OF OPERATION
`
`STORE START TIME IN
`
`MEMORY 1104 OF VEHICLE 1100
`
`
`
`
`
`IS VEHICLE
`
`1100 STILL
`
`OPERATING?
`
`
`
`NO
`
`DETERMINE THE STOP
`
`TIIVIE OF OPERATION
`
`
`
`
`STORE STOP TIME IN
`
`I
`
`I! ORY1104OFVEHICIE1100
`
`
`
`
`
`
`
`
`TRANSMIT
`C OMPO SITE
`
`ME S SAGE TO
`
`CENTRAL UNIT 1110
`
`TRANSMIT COMPOSITE
`
`I\/HE S SAGE TO INTERMEDLAIE
`
`STORAGE AND
`
`COMMUNICATION UNIT 1 108
`
`TRANSMIT COMPOSITE
`
`
`
`
`1\/[ESSAGE TO
`
`CENTRAL UNIT 11 10
`
`Page 001527
`
`

`
`WO 01/73693
`
`PCT/IL01/00155
`
`_r..“.£mN.._.__.m__..M_.c_.__._.__._,__
`
` fi|\\\\lIIIllllII..._If_22_:....3_H\A.m22=33.m_r§-=,_s2§=<h":2:5...£5=.§-=§2._=_E“.._§..._§£22_.§-=§2_____,_=
`
`
`
`
`
`mn..._)%,W.
`
`¢¢m_
`
`
`
`cam.¢em_
`
`E;=<.§§._=En._§.8.$Es:
`
`........--.
`
`§-2n__.:__3:582_r....1-,
`
`z2.Ew5.28%
`5.»2,a%.......1-;E3.=<_..§
`
`Page001528
`
`
`
`
`

`
`WO 01/73693
`
`PCT/IL01/00155
`
`mms§._._._E:mm....-~_”_s_H...E___E
`
`".=.____..E.._eL_
`
`E:o_.._
`
`_
`
`
`
`=§-=§E____
`
`28.335E2...5as
`
`Page 001529
`
`
`
`

`
`WO 01/73693
`
`PCT/IL01/00155
`
`24/39
`
`—nl|l
`
`2-m._.E2__.,m_u___m_>__
`.=§.__._.$ass
`
`
`
`=32;§=._
`
`:.n._zS_
`
`m.--§%a.”§:J_
`a-§_:_E=E_
`asumzau
`
`1=._~§Es:
`..§.2.sE.s__
`
`2.§§NEs.
`=<85E=_._._3azfi
`2.ES"
`
`2a~.2_.%#2.:
`
`SS
`
`?_~=-=§2_____==._.
`
`
`88.8.2"E_<E
`
`=._2u2.fizz.“
`
`
`
` __§-__§2.:=_<._.5w\|\nIIIIIIIIIIII;
`
`
`
`_..§.s._:$2.."_,n.~...&.._E_.W_.._m_.=.M_.>._
`
`
`
`
`
`=§§“$5.:5E8mzfim
`
`N:E8M23"
`
`02
`
`.o_.._
`
`_
`
`=§-=§E=§-=E_5.__.__==__.5:2
`
`_
`
`0..».._.m.._,.3\a=E“N:£23“"..§.__§E2:_=<$§_=E
`_,_",n,.m..¢.,.M_..m.__.M_._u___m_.__
`..§.___§£5
`E£23"
`
`
`
`.. .M@$N\é\\\._
`
`82
`
`Page 001530
`
`
`
`
`
`

`
`WO 01/73693
`
`PCT/IL0l/00155
`
`25/39
`
`SATELLITES
`
`1503
`
`FIG 11A
`
`1502
`
`1504
`
`//"‘-1804
`
`1802
`
`1505
`
`1506
`
`POLLUTION
`MONITOR
`
`
`
`COMMUNICATOR
`
`
`
`RECEIVER /
`
`TRANSCEIVER
`
`%
`
`1806
`
`1
`
`810
`
`E
`
`COMMUNICATOR
`
`RECEIVER/
`
`
`TRANSCEIVER
`
`INTERMEDIATE STORAGE AND
`COMMUNICATION UNIT
`
`1814
`
`1816
`
`DATABASE
`
`1510
`
`BILLING /“1818
`
`Page 001531
`
`

`
`WO 01/73693
`
`PCT/lL01/00155
`
`26/39
`
`FIG 1 113
`
`
`
`
`
`--_%_MHuMTuEmNYTWmWwWVWMT_CMMX.1IIn:::n»nu::v:::n::un::::u:u::u::::u VW...............................M...............
`:1.WTWmwW_"WmmmRTMRWmmMWWmmmm1MNmRCmmmmWMNNWWN_mMMocm_0mCMcm_Umm........-M@TommmMWmH_mMflu.An"W..................................umNT............................--wTm_......
`..uAHDm
`
`rIIIIIIIIxIIIIIIIIIIIIIIIIIIIIIIIIIIIIl._
`
`BILLING
`
`1914
`
`Page 001532
`
`
`

`
`WO 01/73693
`
`27/39
`
`1702
`
`PCT/IL01/00155
`
`FIG 11C
`
`_RO............:mEmH.__WWREmWE0mmGM“
`mmmmaWasHA:NmMmmew
`_mTMWmNR"._7OOWWmmmmmmMummDm
` Wmm...........................VVVVVVVVVVVVVVVVVVVmWW“wW__TuHS_.A%"WWRmDT_Mmmmmm
`
`r..........................--:-................--_d._IC"
`
` H....................--R../.-.1.........................J.CfiUWWmMET9|m.MWMNW_CE_HW2Wum.............................
`0....Im.uV._E_mmm_
`
`
`
`Page 001533
`
`
`

`
`WO 01/73693
`
`PCT/IL01/00155
`
`28/39
`
`FIG 12A
`
` IS VEHICLE
`
`1500 BEING
`
`OPERATED?
`
`
`
`
`
`
`
`STORE IN 1\/HEMORY 1504 OF
`VEHICLE 1500: VEHICLE
`
`LOCATION, TIME &
`VEHICLE POLLUTION
`
`
`
`
`
`
`MONITOR DATA (1505)
`
`
`
`TRANSMIT TO INTERMEDIATE
`
`
`
`
`
`
`Page 001534
`
`TRANSMIT TO CENTRAL
`
`STORAGEAND
`COMMUNICATIONUNT1‘ 1508
`UNIT I510 COMPOSITE
`COMPOSHE MESSAGE:
`MESSAGE? VEHICLE IO
`VEHICLEID &DATA STOREDIN
`& DATA STORED IN
`1\/LEMORY 1 504
`
`MEMORY 1504
`
`TRANSIVIIT TO
`
`CENTRAL UNIT 15 1 O
`
`

`
`WO 01/73693
`
`PCT/IL01/D0155
`
`29/39
`
`FIG 12B
`
`
` IS THERE A
`VEHICLE NEAR
`TRAVEL
`MONITOR 1604?
`
`
`
`
`STORE IN MEMORY 1606 OF
`TRAVEL MONITOR 1604:
`
`VEHICLE ID & TIME
`
`
`TRANSMIT TO
`CENTRAL UNIT 1610
`
`
`
`
`
`
`
`CO1\/[POSITE MESSAGE:
`
`TRAVEL MONITOR ID,
`VEHICLE IDS & TIME
`
`
`
`Page 001535
`
`

`
`W0 01/73693
`
`PCT/IL0l/00l55
`
`30/39
`
`FIG 12C
`
`
`
`
`IS THERE A
`TRANSIVIITTER
`NEAR
`VEHICLE 1700?
`
`
`STORE IN IVHEMORY 1706 OF
`VEHICLE 1700:
`
`TRANSMITTER ID & TI1\/H3
`
`
`
`
`
`TRANSIVIIT TO
`
`INTERMEDIATE STORAGE
`
`
`
`
`TRANSIVJIT TO CENTRAL
`
`UNIT 1710 CO1\/IPOSITE
`
`1\/IESSAGE: VEHICLE ID,
`TRANSMITTER IDS
`
`& TII\/IE
`
`
`
`
`
`AND COMMUNICAIIONUNIT
`
`1712 COIVIPOSITE 1\/IESSAGE:
`
`VEHICLE ID,
`TRANSMITTER IDS & TIME
`
`
`
`
`
`Page 001536
`
`
`
`CENTRAL UNIT 1710
`
`TRANSIVIIT TO
`
`

`
`W0 01/73693
`
`PCT/IL0l/00155
`
`
`
` 3;-‘;\I\I\\\\\\\\\C.
`‘ZIIIIIIIIIII_-\I\I\|\\\\\(g
`
`,//START TIME‘,
`IIIIII
`I,‘ 08:20AM
`
`
`
`.r’é'IoI> IIIIE“~.
`\
`\
`=. 09:00AM I
`~ T‘.
`._~
`‘~ 25KM "
`—————— 4’
`
`
`
`
`FIG. 13A
`
`_____ ‘~ .
`
`'
`
`T‘~ - .
`
`_ —- "1
`
`5vEIIIcLE ID: A319-Z234‘
`IDATE: 10-07-2000
`ESTART TIME: 08:20AM;
`§s1'oP TIME: o9:ooAM§
`EMILEAGE: 25KM
`I
`ESTART TIME: o4:4oPM§
`gswop TIME: 05:40PM‘
`EMILEAGE: 25KM
`
`
`
`2110 E
`
`ISTATION coma: 1234
`;vEHIcLE ID: A319-2234-:
`IDATE: 10-07-2000
`I
`ISTART TIME: 08:20AM!
`ISTOP TIME: 09:00»:
`MILEAGE: 25m
`:
`§START TIME: 04:40?
`ISTOP TIME: 05:40?
`LM_I_1_-_E.A.G_E;_.3§K_M._____-J
`IVEHICLE ID: A785-E2355
`EDATE: 11-07-2000
`i
`ISTART TIME: 06:00AM:
`ESTOP TIME: 06:40AM:
`EMILEAGE: 35KM
`I
`ISTART TIME: 09:40AM;
`ESTOP TIME: 10:00AM!
`LM_I.I-_E_t;I.(_I.Ei__l.5!I(_M....._-'
`EVEIIICLE ID: A579-R412
`IDATE:
`ll-07-2000
`ESTART TIME: 08:55AM
`ISTOP TIME: 11:34-AM’
`5,M!LEAG.E.=___1_§0KM
`
`L_-___-__-__-_
`
`Page 001537
`
`

`
`W0 01/73693
`
`PCT/IL0l/00155
`
`32/39
`
` ’-Z\I\I\\\\\\\\\1.
`
`~'.'~‘ZlIIlIlll/l/I/-
`
`
`{I
`
`/§'r0P Tluifx
`2‘ 09:00AM 2
`
`
`s
`
`.——--
`
`‘~
`
`4
`
`4’
`
`_-’/S'l‘AR'l' TIMl§‘_,'-'—’—”"
`\ 04=40PM /
`
`:’STOP TIME‘.
`
`F
`
`‘ .
`
`————————‘
`
`,.v
`
`4
`
`~__~
`
`--
`
`EVEHICLE ID: AY78-R4565
`EDATE: 10-07-2000
`§
`§START TIME: 08:20AM;
`ESTOP TIME: 09:00AM§
`EMILEAGE: 2510!
`E
`§STAR'l‘ TIME: 04:40PME
`‘STOP TIME: 07:40PM§
`___________________________ __
`
`EVEHICLE ID: AY78-R456‘
`EDATE:
`ll-07-2000
`§START TIME: 08:20AM!
`§STOP TIME: 09:20AM!
`:MILEAGE: 25KM
`E
`§START TIME: 05:40PM;
`:STOP TIME: 06:40PM;
`3 M1Ig_a_A_g_1§: 251m
`
`»IIIIJ
`
`
`
`'0‘
`gag
`L—-—;
`
`Page 001538
`
`FIG. 13B
`
`

`
`W0 01/73693
`
`PCT/IL0l/00155
`
`
`
`g 3‘? 33/39 FIG. 130 3g
`
`
`
`2303
`
` :j\I\I\I\I\\<'<i
`
` FT-‘K\I\I\\\\\\\\C.‘r’?-‘-Zllllll/ll
`
`
`
`$2303
`
`
`
`
`'
`
`I
`
`I
`
`_
`
`2306
`
`
` ___.—-"I
`
`:'vEIIIcLE ID: A223—T567I
`;n4TE: 14-07-2000
`.
`:START TIME: 00:11AM;
`:STOP TIME: 09:40AM;
`;_MI_L_E_II_c_E_::__3_5_I(_M_____J
`:vEIIIcI.E ID: AQ43-P234:
`IDATE: 14-07-2000
`I
`ESTART TIME: 10:48AM}
`u§{TI0EI;G1;IME3%K1L1:12AM:
`:
`=
`I
`:DATE= 15-07-2000
`I
`ISTART TIME: 6:48PM E
`;sT0I= TIME: 8:32PM;
`LMILEAGE:
`l20KM
`J
`
`
`
`.....
`7
`I
`:VEHlCLE ID: A223—T567
`I
`IDATE: 14-07-2000
`ISTART TIME: 08:11AM;
`ISTOP TIME: 09:40AM:
`;MILEAcE: 35101
`I
`{START TIME: 04:40PM
`{STOP TIME: 05:40PMI
`:mI,EA(:E; 351m
`:DATI-1: 15-07-2000
`ISTART TIME: 10:11AM§
`ll:50A
`ESTOP TIME:
`IMILEAGE:
`l05I(M
`
`M:
`
`------------- "
`
`
`
`
`
`Page 001539
`
`;vEIIIcI.E ID: 422345675
`:DATE: 14-07-2000 ;
`{START TIME: 08:llAM'
`ESTOP TIME: 09:40AM:
`L 35KM
`'
`
`
`
`
`
`
`
`
`
`

`
`WO 01/73693
`
`PCT/IL0l/00155
`
`304/309
`
`FIG 14A
`
`2104
`
`2106
`
`
`
`2100
`
`h[EBACnyr
`
`CXDBJBJLHQICUXTCHR
`
`g
`
`CPU
`
`2410
`
`RECEIVER /
`
`TRANSCEIVER
`
`2408
`
`
`E
`2108
`
`COMMUNICATOR
`
`MEMORY
`
`INTERl\/JEDIATE STORAGE
`COM1\/IUNICATION UNIT
`
`RECEIVER/
`TRANSCEIVER
`
`DATABASE
`
`2110
`
`
`
`CENTRAL, UNIT
`
`Page 001540
`
`

`
`W0 01/73693
`
`PCT/IL01/00155
`
`35/39
`
`FIG 14B
`
`2202
`
`2502
`
`SENSOR
`
`
`
`2200
`
`
`
`
`......................................................................................................................................................................................................................
`
`RECEIVER/
`
`
`TRANSCEIVER
`
`2210
`
`Page 001541
`
`

`
`wo 01/73593
`
`PCT/ILOl/00155
`
`36B9
`
`FK314C
`
`SATELLITES
`
`2303
`
`2604
`
`2602
`
`230
`
`4
`
`2
`3
`
`
`
`52300
`
`2306
`
`COMMUNICATOR
`
`g
`
`
`
`2608
`
`%
`”/TTT\26O5
`
`TRANSCEIVER
`
`RECEIVER /
`
`2606
`
`2610 I
`
`2612
`
`COMMUNICATOR
`
`INTERMEDIATE STORAGE
`ANDCOMMUNICATION UNIT
`
`
`
`RECEIVER /
`TRANSCEIVER
`
`
`
`
`
`2614
`
`
`2616 g
`I
`
`2310
`
`DATABASE
`
`2618
`
`Page001542
`
`

`
`W0 01/73693
`
`37/39
`
`PCT/IL0l/00155
`
`FIG 15A
`
`
`
` IS VEHICLE
`2 100 BEING
`
`
`
`NO
`
`OPERATED?
`
`YES
`
`NO
`
`
`
`
`TRANSMIT COMPOSITE
`
`MESSAGE TO
`
`INTERIVIEDIATE STORAGE
`
`AND COMIVIUNICATION
`
`UNIT 21 O8
`
`TRANSIVIIT COMPOSITE
`
`MESSAGE TO CENTRAL
`
`UNIT 21 10
`
`Page 001543
`
`DETERMINE START TIIVIE
`OF OPERATION
`
`RESET MILEAGE COUNTER
`
`STORE START TIME IN
`
`ME1\/IORY 2104 OF VEHICLE
`
`
`
` IS VEHICLE
`OPERATING?
`
`NO
`
`21 O0 STILL
`
`DETERMINE STOP TI1\/IE
`
`OF OPERATION
`
`CALCULATE MILEAGE PROM
`
`START TI1\/IE TO STOP TIIVIE
`
`STORE STOP TIME AND
`
`OF VEHICLE 2100
`
`MILEAGE IN MEMORY 2104
`
`

`
`W0 01/73693
`
`PCT/IL01/00155
`
`38/39
`
`FIG 15B
`
`TRANSMIT
`
`COMPOSITE
`
`IVIESSAGE TO
`
`UNIT 2210
`
`CENTRAL
`
`Page 001544
`
`
` IS VEHICLE
`
`NO
`2200 BEING
`
`
`OPERATED?
`
`
`
`YES
`
`DETERMINE THE START
`
`TIME OF OPERATION
`
`RESET MILEAGE COUNTER
`
`STORE START TIME IN
`
`IVIEMORY 2204 OF VEHICLE 2200
`
`
`
`IS VEHICLE
`
`
`
`2200 STILL
`
`OPERATING?
`
`
`
`NO
`
`DETERMINE TIDE STOP
`
`TII\/IE OF OPERATION
`
`CALCULATE MILEAGE FROM
`
`START TIME TO STOP TIME
`
`
`
`
`STORE STOP TI1\/IE &
`IVHLEAGE IN MEMORY 2204
`
`
`
`
`OF VEHICLE 2200
`
`

`
`wo 01/73693
`
`PCT/IL0l/00155
`
`39/39
`
`FIG 15C
`
`HICLE
`
`2300 BEING
`
`OPERATED?
`
`
`
`YE
`
`DETERMINE THE START
`
`TIME OF OPERATION
`
`RESET MILEAGE COUNTER
`
`
`
`
`
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`UNIT 23 10
`
`
`
`IS VEHICLE
`
`23 00 STILL
`
`OPERATING?
`
`TRANSMIT
`COMPOSITE
`
`
`
`
`(QOMMUNICAIIO
` UNIT2308
`
`
`MESSAGE TO
`INTERMEDIATE
`
`STORAGE AND
`
`
`
`N0
`
`DETERMINE THE STOP
`
`TIME OF OPERATION
`
`
`
`TRANSMIT
`
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`CO1\/[POSITE
`
`
`CALCULATE MILEAGE FROM
`
`START TlI\/IE TO STOP TIME
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`MESSAGE TO
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`UNIT 23 10
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`CENTRAL
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`STORE STOP TII\/IE &
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`MILEAGE IN 1\/IEMORY 2304
`OF VEHICLE 2300
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`Page 001545
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`STORE START THVIE IN
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`MEMORY 2304 OF VEHICLE 2300
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`TRANSMIT
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`COMPOSITE
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`MESSAGE TO
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`CENTRAL
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`

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`(12) INTERNATIONAL APPLICATION PUBLISHED UNDER THE PATENT COOPERATION TREATY (PCT)
`
`(19) World Intellectual Property Organization
`International Bureau
`
`(43) International Publication Date
`23 May 2002 (23.05.2002)
`
`
`
`PCT
`
`(10) International Publication Number
`WO 02/41119 A2
`
`(51)
`
`International Patent Classification’:
`
`G06F
`
`(21)
`
`International Application Number:
`
`PCT/US01/49935
`
`(22)
`
`International Filing Date: 23 October 2001 (23.10.2001)
`
`CZ, DE, DK, DM, DZ, EC, EE, ES, FI, GB, GD, GE, GH,
`GM, HR, HU, ID, IL, IN, IS, JP, KE, KG, KP, KR, KZ, LC,
`LK, LR, LS, LT, LU, LV, MA, MD, MG, MK, MN, MW,
`MX, MZ, NO, NZ, PH, PL, PT, Ro, RU, SD, SE, SG, SI,
`SK, SL, TJ, TM, TR, TT, TZ, UA, UG, UZ, VN, YU, ZA,
`ZW.
`
`(25)
`
`Filing Language:
`
`(26)
`
`Publication Language:
`
`English
`
`English
`
`(84)
`
`(30)
`
`Priority Data:
`60/244,408
`
`30 October 2000 (30.10.2000)
`
`US
`
`(71)
`(72)
`
`Applicant and
`Inventor: GOUX, Timothy, Gayle [US/US]; 2045 High—
`way 59, Manderville, LA 70448 (US).
`
`(74)
`
`Agent: SMITH, Gregory, Scott; Troutman Sanders LLP,
`600 Peachtree Street N.E. #5200, Atlanta, GA 30308 (US).
`
`(81)
`
`Designated States (national): AE, AG, AL, AM, AT, AU,
`Az, BA, BB, BG, BR, BY, BZ, CA, CH, CN, Co, CR, CU,
`
`Designated States (regional): ARIPO patent (GH, GM,
`KE, LS, MW, MZ, SD, SL, SZ, TZ, UG, ZW), Eurasian
`patent (AM, AZ, BY, KG, KZ, MD, RU, TJ, TM), European
`patent (AT, BE, CH, CY, DE, DK, ES, FI, FR, GB, GR, IE,
`IT, LU, MC, NL, PT, SE, TR), OAPI patent (BF, BJ, CF,
`CG, CI, CM, GA, GN, GQ, GW, NIL, MR, NE, SN, TD,
`TG).
`
`Published:
`without international search report and to be republished
`upon receipt ofthat report
`
`For two—letter codes and other abbreviations, refer to the "Guid-
`ance Notes on Codes andAbbreviations " appearing at the begin-
`ning ofeach regular issue ofthe PCT Gazette.
`
`(54) Title: A SYSTEM AND METHOD FOR IMPROVING THE OPERATIONS OF A BUSINESS ENTITY AND MONITOR—
`ING AND REPORTING THE RESULTS THEREOF
`
`
`
`(57) Abstract: The present invention is a method and system for providing reduced insurance premiums to an insured entity and
`a reduced risk of loss to an insuring entity. A program containing certain program requirements for the insured entity is created,
`and procedures are designed for the insured entity to meet these predetermined program requirements. The proximity in meeting
`these program requirements are monitored and then communicated to an interested third party, such as the insurer. Thus, the present
`invention by monitoring the insured entity, and communicating information relating to the insured entity to the insuring entity, allows
`the insuring entity to reduce the insurance costs to the insured entity if such monitoring results in favorable information for the insurer.
`
`Page 001546
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`

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`WO 02/41119
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`PCT/US01/49935
`
`A SYSTEM AND METHOD FOR IMPROVING THE
`
`OPERATION OF A BUSINESS ENTITY AND MONITORING AND
`REPORTING THE RESULTS THEREOF
`
`TECHNICAL FIELD
`
`This invention relates to the field of insurance contracting and, more
`
`particularly to the field of providing a business model that effectively allows
`
`the provision of reduced insurance premiums and reduced risk of loss.
`
`BACKGROUND OF THE INVENTION
`
`10
`
`15
`
`The insurance industry is religiously governed by the law of averages.
`
`To be profitable, insurance companies must sell policies at premiums that will
`
`exceed the cost necessary to cover expected claims and operating expenses.
`
`Identifying the operating expenses for the insurance company is basic business
`
`management. However, identifying the expected claims that will arise from an
`
`insurance company’s client base is a complex task. The typical insurance
`
`company has a team of actuarial scientist that pour through statistics, cost
`
`curves, trends, risk assessments, and a pocket protector full of other variables in
`
`an effort to accurately identify the risk of loss associated with particular client
`
`profiles or genres. Too many ill conceived projections can drag an insurance
`
`20
`
`company into bankruptcy.
`
`Thus, the insurance company is met with at least two competing interests
`
`or goals. On one hand, it needs to guaranty the reception of premiums adequate
`
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`PCT/US01/49935
`
`to keep the company profitable. On the other hand, the insurance company
`
`needs to offer price competitive programs that will attract a large number of
`
`clients.
`
`If the premiums for the insurance programs are set too low,
`
`the
`
`insurance company runs the risk of becoming cash poor.
`
`If the premiums for
`
`the insurance programs are set too high, the insurance company may not be
`
`able to attract enough clients to make the program worth while. The optimum
`
`scenario is to provide competitively priced programs to low risk clients.
`Therefore, there is a need in the art for a technique to help reduce the premiums
`
`of an insurance program while at the same time, reducing the risk attributed to
`
`10
`
`insuring a particular entity.
`
`The health care provider industry heavily relies on the insurance
`
`industry. Of particular interest is the long—term health care industry, such as
`
`nursing homes, elderly homes or the like. During the 1998 to 2000 time-frame,
`
`these long-term health care providers experienced insurance premium increases
`
`15
`
`as high as 350% per year. One reason that these escalating premiums can be
`attributed to is the high-risk nature of the business. The number one claim
`
`levied against long-term health care providers are fall claims.
`In addition,
`wound care claims, such as bed sores, result in multimillion dollar judgments
`
`against the health care provider. These judgments are ultimately paid by the
`
`20
`
`insurance companies.
`
`The insurance risk of long—term health care providers dramatically
`
`increased with the implementation of the new Medicare system. When initially
`
`implemented,
`
`the rates offered by the Medicare system were drastically
`
`insufficient to meet the cost of the services provided. As a result, it was
`
`25
`
`necessary for many long-term health care providers to reduce their nursing staff
`
`and to cut corners in obtaining proper medical equipment and supplies.
`
`2
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`Page 001548
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`PCT/US01/49935
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`Although corrective reimbursement changes have been made, this industry is
`
`still plagued with a high turnover rate of clinical and support personnel. The
`
`high turnover rate directly has an effect on the number of incidents that occur in
`
`such a long—term health care provider establishment.
`
`High-risk entities, such as long-terrn health care providers are stuck in a
`
`“catch 22” situation. The providers cannot afford to provide the level of
`
`service necessary to reduce their insurability risks. Because of the high risk,
`
`the insurance premiums for such entities continue to escalate which results in
`
`increasing the insurability risk of the entity. Thus, there is a need in the art for
`
`a technique to help reduce the insurability risk of a long—ter1n health care
`
`provider and to reduce the insurance premiums charged to the same.
`
`Similar to the long-term health care industry, many other industries are
`
`also plagued by escalating insurance premiums do to their high-risk status.
`
`Thus there is a need in the art for a general technique that can help reduce the
`
`insurability risk of an entity and to provide affordable and profitable insurance
`
`10
`
`15
`
`programs to the entities.
`
`SUMMARY OF THE INVENTION
`
`The present invention satisfies the above needs by providing a method
`
`and a system that operate to (a) reduce the insurability risk of an insured entity,
`(b) reduce the insurance premiums for insurance programs, (c) increase the
`
`20
`
`profitability of the insuring entities by decreasing the probability of incident
`
`claims being levied against the insured entity, and ((1) reduce the ‘overall risk
`
`factors in the health care industry, or other industry, being serviced by another
`
`entity to improve operations.
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`Page 001549
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`PCT/US01/49935
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`The present invention formulates a program for the insured entity that
`
`contains various program requirements. Procedures designed for the insured
`
`entity to meet the program requirements are implemented and monitored to
`
`identify the proximity of the insured entity meeting the program requirements.
`
`Once the present invention calculates the proximity of the insured entity
`
`meeting these program requirements,
`
`the proximity is calculated to
`
`an
`
`interested third party, such as the insurer. Thus, the present invention by
`
`monitoring the insured entity, and communicating information relating to the
`
`insured entity to the insuring entity, allows the insuring entity to reduce the
`
`10
`
`insurance costs to the insured entity if such monitoring results in favorable
`
`information for the insurer.
`
`BRIEF DESCRIPTION OF THE DRAWINGS
`
`Fig.
`
`1
`
`is a functional block diagram illustrating an exemplary
`
`embodiment of the business model of the present invention.
`
`Fig. 2 is
`
`a functional block diagram illustrating an exemplary
`
`embodiment of the business model of the present invention.
`
`Fig. 3 is a flow diagram illustrating the steps and procedures that are
`
`involved in the exemplary implementation of the present invention illustrated
`
`in Fig. 1
`
`Fig. 4 is a functional block diagram illustrating one specific application
`
`15
`
`20
`
`of the present invention.
`
`DETAILED DESCRIPTION
`
`Referring now to the figures in which like numerals refer to like elements
`
`throughout the several views, various embodiments and aspects of the present
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`PCT/US01/49935
`
`invention are described. The present invention provides a system and method
`
`and business model for providing reduced—cost and cost-effective insurance
`
`programs, and has been described in relation to particular embodiments wl1ich
`
`are intended in all respects to be illustrative rather than restrictive. Those
`
`skilled in the art will understand that the principles of the present invention
`
`may be applied to, and embodied in, various program modules for execution on
`
`differing types of computers and/or equipment, operating in differing types of
`
`networks, regardless of the application. Although the business model of the
`
`present invention has been described as being integrated within an insuring
`
`entity, it should be understood that the business model of the present invention
`
`can actually exist independent of an insuring entity.
`
`In addition, the present
`
`invention has been described as being interactive with a user; however, those
`
`skilled in the art will appreciate that the user interface may also be substituted
`
`with a computer or machine interface.
`
`Fig.
`
`l is a functional block diagram illustrating an exemplary structure
`
`of the business model of the present invention. The business model includes
`
`three entity classes: strategic partners 100, program catalysts 140 , and program
`
`clients 130.
`
`The strategic partners include one or more entities that
`
`10
`
`15
`
`cooperatively, or independently, provide contractual programs 115 to program
`
`20
`
`clients 140. Examples of such programs include, but are not limited to, life,
`
`health, product
`
`liability or other insurance programs, warranty programs,
`
`malpractice liability and maintenance programs. As illustrated in Fig. l, the
`
`strategic partners 100 include multiple strategic partners 110, a priority
`
`strategic partner 105 and distribution 120.
`
`25
`
`The program clients 130 may include a variety of entities and the present
`
`invention is not limited to any particular entity or class of entities. However,
`
`Page 001551
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`
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`
`PCT/US01/49935
`
`examples of program clients 130 are provided within the specification and each
`
`such provision is to be intended for illustrative purposes only and is not
`
`intended to be restrictive or to limit the scope of the present invention. A few
`
`examples of program clients 130 include a health care provider, an individual
`
`person, a building owner, a vehicle owner, individual entity/corporation or the
`
`like.
`
`The program catalyst 140 operates to assist the program clients 130 in
`
`meeting the obligations and requirements of the program. The obligations and
`
`requirements of the program may be set by the program catalyst 140 based on
`
`its experience and expertise, the strategic partners 100, and even in some cases,
`
`the program clients.
`
`The business model of the present invention allow the strategic partners
`
`100, operating independently or in conjunction with a program catalyst 140, to
`
`create programs to be offered to the program clients 130. One a program 115 is
`
`in place, the program catalyst 140 works with the program client 130 to ensure
`
`that certain obligations, requirements, performance standards, or the like are
`
`being met. The program catalyst 140 then utilizes a web-enabled, proprietary
`
`software reporting system to provide instantaneous feedback to the strategic
`
`partners 100 and/or the program clients 130 regarding the performance of the
`
`program 115. However, it should be understood that the Program catalyst is
`
`not required to utilize the reporting system but rather, this activity simply
`
`comprises one inventive aspect.
`
`10
`
`15
`
`20
`
`Fig. 2 is
`
`a
`
`functional block diagram illustrating an exemplary
`
`embodiment
`
`of the business model of the present
`
`invention.
`
`In this
`
`25'
`
`embodiment, the operation of the business model of the present invention is
`
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`PCT/US01/49935
`
`illustrated in the provision of an insurance program offered to a long-term
`
`health care provider is illustrated. The strategic partners in this embodiment
`
`include entities that provide or are affiliated with the insurance industry
`
`“insuring entities” 200.
`
`The program clients in this embodiment
`
`include
`
`insured entities 230.
`
`The insuring entities 200 include insurance providers 210, authorizing or
`
`initiating brokers (MGAI) 205 and managing general agents (“MGAS”) 220.
`
`The insured entities 230 may include a variety of entities and the present
`
`invention is not limited to any particular entity or class of entities; however, for
`
`this example, the insured entity 230 is a long-term health care provider, such as
`
`a nursing home. The program catalyst 240 operates to assist the insured entity
`
`230 in meeting the obligations and requirements of the insurance program
`
`offered by the insuring entities 200.
`
`Insuring entities 200 typically provide multiple insurance programs from
`
`which a potential insured entity 230 can select. Under the business model of
`
`the present invention, at least one of these insurance programs is offered at a
`
`reduced premium,‘ and in exchange for the reduced premium, the services of the
`
`program catalyst 240 are employed. The program catalyst 240 works closely
`
`10
`
`15
`
`with the insured entity 230 and provides a program management and risk
`management function. The program catalyst 230 also works closely with the
`
`20
`
`insuring entities 200 to provide program feedback intended to assist
`
`the
`
`insuring entities 200 in the administration of the insurance program. Thus, the
`
`program catalyst may include the provision of clinically driven programs 242
`
`in one embodiment and web-enabled reporting 241 in another embodiment, or
`
`25
`
`yet in even another embodiment, both.
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`Page 001553
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`
`PCT/US01/49935
`
`Fig. 3 is a flow diagram illustrating the steps and procedures that are
`
`involved in the exemplary implementation of the present invention illustrated
`
`in Fig. 1. Initially an insurance program is formulated 310. The result of this
`
`process is a insurance contract or program 215 that can be subscribed to our
`
`purchased by a potential program customer — the insured entity 230. Several
`
`techniques including various participants may be employed in this process and
`
`the present
`
`invention is not
`
`limited to any particular technique.
`
`In one
`
`embodiment, several insurance providers are pooled together to underwrite the
`insurance program. This technique advantageously allows the risk associated
`
`with the insurance to be diluted by spreading any losses to all of the pooled
`
`insurers. Those skilled in the art and knowledgeable about
`
`the insurance
`
`industry will realize that this is simply one technique that can be used to create
`
`the insurance program.
`
`In other embodiments, a single insurer may offer the
`
`program.
`
`Once the insurance program is formulated 310, the insuring entities 200
`
`and one or more potential
`
`insured entities
`
`2340, enter
`
`into insurance
`
`relationships 320. This procedure may be conducted in a variety of manners
`
`and the present invention is not limited to any particular manner. Rather, the
`
`present invention is only dependent upon ultimately establishing an insurance
`
`relationship between the insured entity 230 and an insuring entity 200.
`
`In the
`
`embodiment illustrated in Fig. 2,
`
`the insurance program can be sold to a
`
`potential insured entity 230 either directly 250 or through a managing general
`
`agent (“MGA”) 220 255 256.
`
`In the first instance, the insured entity 230 pays
`
`10
`
`15
`
`20
`
`insurance premiums to the insuring entity 205 259. In the second instance, the
`
`25
`
`insured entity 230 pays insurance premiums to the MGA 220 258 and the MGA
`
`220 provides payment to the authorizing or initiating brokers 205 258.
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`PCT/US01/49935
`
`An additional step that must be performed is the creation of a
`
`relationship between the insuring entity 200 and the program catalyst 240 330.
`
`The program catalyst can take on a variety of forms and the present invention is
`
`not limited to one particular form nor to the examples provided herein.
`
`In one
`
`embodiment,
`
`the program catalyst 240 is a service company that provides
`
`services to the insured entity 200 on behalf of the insuring entity 230. As an
`
`example, if the insured entity 230 is a long-term health care provider,
`
`the
`
`program catalyst may provide risk management/assessment services to help
`
`reduce the number of incidents within the facilities of the insured entity 230.
`
`10
`
`15
`
`20
`
`25
`
`In the preferred embodiment, directed toward the health care industry, an
`
`exemplary program catalyst 240 can utilize the latest
`
`technologies and
`
`techniques to reduce the risk of accidents occurring in the health care arena.
`
`These
`
`efforts
`
`can be directed towards
`
`fall prevention, wound care,
`
`documentation guidelines, nutritional issues, security issues, pharmacy/drug
`
`programs, sexual harassment programs, or the like. Advantageously,
`
`the
`
`program catalyst 240 of the preferred embodiment of the present invention
`
`utilizes
`
`licensed clinicians
`
`and nurse managers
`
`to provide
`
`the
`
`risk
`
`management/assessment services.
`
`The relationship between the insuring entity 200 and the program
`
`catalyst 240 may take the form of a services contract under which the program
`
`catalyst 240 is paid for services rendered. Alternatively, the business model of
`
`the present invention also anticipates that the program catalyst 240 may enter
`
`into an agreement with the insured entity 230 for the provision of the services.
`
`In yet another alternate embodiment, the program catalyst 240 and the insuring
`
`entity 200 may be the same entity.
`
`In yet another embodiment, the program
`
`catalyst 240 may be an integral part of the insured entity 230.
`
`In yet another
`
`Page 001555
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`
`embodiment, the program catalyst 240 may enter into an agreement with the
`
`priority strategic partner - the MGA1 205.
`
`Regardless of which of the above-described embodiments are utilized, at
`
`i step 340 the program catalyst 240 provides services to the insured entity 230
`
`and then provides a reporting service to the insuring entity 200 and/or the
`
`insured entity 230.
`
`In the preferred embodiment, a web-based and/or a web-
`
`enabled software solution is utilized by the program catalyst 240 in providing
`
`these services. Periodically (i.e., once per week, month, etc.), a member of the
`
`program catalyst 240 team (i.e., a nurse manager) will utilize the software
`
`solution to address the key factors of the risk management program. Based on
`
`the input from the program catalyst 240 team member, scoring data for relevant
`
`issues are generated. This scoring data identifies a relevant issue in the
`
`applicable industry and attaches a performance score to indicate the insured
`
`entity’s conformance or adherence to operational requirements associated with
`
`this issue.
`
`In one embodiment, a value of 1 is assigned for poor performance
`
`10
`
`15
`
`and a 5 is assigned for excellent or above standard performance. These scores
`
`are a compilation of many factors, scored/measured on any particular subject
`
`matter within the program. Advantageously, the web-based software solution
`
`enables the program catalyst 240 to generate and deliver to pertinent parties in
`
`20
`
`a timely and expedient manner.
`
`Finally the insuring entity 200 can utilize the provided reports to modify,
`
`enhance or cancel
`
`insurance programs 350.
`
`Based on the reported
`
`performances of the insured entities 230, weak points and strong points can be
`
`identified. For the weak points, countermeasures can be employed, either
`directly or through the program catalyst to further reduce the amount of risk.
`
`25
`
`The program catalyst 140 also provides access to the web-enabled software
`
`10
`
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`solution so that it serves as key and primary communication tool between the
`
`program catalyst 240 and the insuring entities 200.
`
`In addition, the program
`
`catalyst 240 can also provide training services to the insured entity 230. The
`
`training services instruct the insured entity regarding procedures and operations
`
`to help them attain a high scores.
`
`Although the business model of the present invention has been described
`
`as being integrated within an insuring entity, it should be unders