111111
`
`1111111111111111111111111111111111111111111111111111111111111
`US007249037B2
`
`c12) United States Patent
`Koppes et al.
`
`(10) Patent No.:
`(45) Date of Patent:
`
`US 7,249,037 B2
`Jul. 24, 2007
`
`(54) SYSTEM FOR MANAGING A STABLE
`VALUE PROTECTED INVESTMENT PLAN
`
`(75)
`
`Inventors: Seth C. Koppes, St. Louis, MO (US);
`Edward J. Lanigan, St. Louis, MO
`(US); William A. Meier, St. Louis, MO
`(US); Richard M. Hurwitz, Wildwood,
`MO (US); Chris J. Garlich, Ballwin,
`MO (US); Mark A. Gilje, Crystal Lake
`Park, MO (US); Scott L. Fargo,
`Brentwood, MO (US)
`
`(73) Assignee: Bancorp Services L.L.P., St. Louis,
`MO (US)
`
`( *) Notice:
`
`Subject to any disclaimer, the term of this
`patent is extended or adjusted under 35
`U.S.C. 154(b) by 627 days.
`
`(21) Appl. No.: 08/709,882
`
`(22) Filed:
`
`Sep. 9, 1996
`
`(65)
`
`(51)
`
`(52)
`(58)
`
`Prior Publication Data
`
`US 2004/0215493 Al
`
`Oct. 28, 2004
`
`Int. Cl.
`(2006.01)
`G06Q 10100
`U.S. Cl. ......................... 705/4; 705/705; 705/36 R
`Field of Classification Search ... ... ... ... .. .. 705/2-4,
`705/7, 34, 35, 36, 40; 364/710.04; 713/189,
`713/193, 200, 201
`See application file for complete search history.
`
`(56)
`
`References Cited
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`
`(Continued)
`
`FOREIGN PATENT DOCUMENTS
`* 7/2002
`
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`
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`
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`Williams, Fred, "Stable value funds feature new twists", Pensions &
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`
`(Continued)
`
`Primary Examiner-Alexander Kalinowski
`Assistant Examiner-Vivek Koppikar
`(74) Attorney, Agent, or Firm-Davidson Berquist Jackson
`& Gowdey LLP
`
`(57)
`
`ABSTRACT
`
`Method and system to track, reconcile and administer the
`values oflife insurance policies in separate accounts, includ(cid:173)
`ing Stable Value Protected funds. Accordingly, targeted
`returns are translated into unit values on a daily basis for
`each fund. Additionally the system tracks restrictions (e.g.,
`timing, amount of withdrawal and amount of reallocations)
`on a premium-by-premium basis, and tracks the book value,
`market value, duration and targeted return on a client-by(cid:173)
`client basis. The system calculates and tracks the payments
`and credits applicable to a withdrawal or reallocation
`request, in addition to the liquidation schedules for each
`fund based on the payment amounts and credits of specific
`funds. Additionally, daily unit values are calculated given a
`periodic targeted return (i.e., a quarterly targeted return).
`
`111 Claims, 15 Drawing Sheets
`
`CALCU~TE NEW B!IANCES FOR All PART~IPANTS a\SED ON NEW
`UNIT VIJ.UES FOR ASSITS & UPDATE VR WITH NEW Bi!ANCES
`
`CALL TJI ASSU -ER AND OOWNLOAIJ Na ASSIT VIJ.UES FOR
`~~ ASS£1 FIJNDS, CONFIRN PREWOUS DAYS TRADES AND CALCU~TE
`NUNBERDFUNI~ PERASSUFIJNDANDTHSRCASHVAlUE
`
`34
`
`RECEIVEADDITIDNALASSUDATAANDREOONCI~
`ALL CHARGES
`INTERNN..LY
`
`11
`
`Ex. 1015 - 1/31
`
`

`
`US 7,249,037 B2
`Page 2
`
`U.S. PATENT DOCUMENTS
`
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`4,942,616 A
`4,969,094 A
`5,101,353 A
`5,126,936 A
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`5,214,579 A
`5,262,942 A
`5,291,398 A
`5,414,838 A
`5,752,236 A *
`5,806,042 A
`5,999,917 A *
`6,343,272 B1 *
`
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`5/1998 Sexton et al ................... 705/4
`9/1998 Kelly et a!.
`12/1999 Facciani eta!. .............. 705/36
`112002 Payne et al .................... 705/4
`
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`
`Ex. 1015 - 2/31
`
`

`
`US 7,249,037 B2
`Page 3
`
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`ket'', National Underwriter, Jul. 1, 1996, p. 16.
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`pany and International Corporate Marketing Group, Inc., Civil
`
`Jersey,
`
`Ex. 1015 - 3/31
`
`

`
`US 7,249,037 B2
`Page 4
`
`Action No. 4:00-CV-70 CEJ, United States District Court, Eastern
`District of Missouri, Feb. 14, 2002.
`Order, Bancorp Services. L.L.C., vs. Hartford Life Insurance Com(cid:173)
`pany and International Corporate Marketing Group, Inc., Civil
`Action No. 4:00-CV-70 CEJ, United States District Court, Eastern
`District of Missouri, Feb. 15, 2002.
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`Group, Inc., Civil Action No. 4:00-CV-70 CEJ, United States
`District Court, Eastern District of Missouri, Feb. 25, 2002.
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`Company and International Corporate Marketing Group, Inc., Civil
`Action No. 4:00-CV-70 CEJ, United States District Court, Eastern
`District of Missouri, Mar. 15, 2002.
`
`Opening Brief of Plaintiff-Cross Appellant, Bancorp Services, L.L.
`C. v. Hartford Life Insurance Company and International Coporate
`Marketing Group, Inc., United States Court of Appeals, Appeal Nos.
`02-1431, 03-1181, Mar. 31, 2003.
`Reply Brief of Plaintiff-Cross Appellant Bancorp Services, L.L.C.,
`Bancorp Services, L.L.C. v. Hartford Life Insurance Company and
`International Corporate Marketing Group, L.L.C., United Sates
`Court of Appeals, Appeal Nos. 02-1431, 03-1181, Jun. 30, 2003.
`Reply Brief of Defendants-Appellants Hartford Life Insurance
`Company and International Corporate Marketing Group, L.L.C.,
`Bancorp Services, L.L.C. v. Hartford Life Insurance Company and
`International Corporate Marketing Group, L.L.C., United States
`Court of Appeals, Appeal Nos. 02-1431, 03-1181, May 27, 2003.
`* cited by examiner
`
`Ex. 1015 - 4/31
`
`

`
`U.S. Patent
`
`Jul. 24, 2007
`
`Sheet 1 of 15
`
`US 7,249,037 B2
`
`20
`
`18
`
`FIG. I
`
`('
`
`I
`
`a....... . ____ _
`.... >.(....
`.... ........
`
`..,....,
`........... yl 6
`........
`I
`!
`4~-:::~ ............... --
`l
`I ..,.,.,"'
`.......... 1v
`4
`
`1
`I
`I
`,....
`I
`~,.. ....
`
`I
`I
`..J
`(..,.
`
`I
`J
`I
`........
`I
`~.. ....
`
`~12
`,.- -..:.
`(----)
`~---I
`,_ __ _
`r-- I 13
`I
`--"~
`-1(
`I
`•r--
`L---
`IL---~
`
`Ex. 1015 - 5/31
`
`

`
`U.S. Patent
`
`Jul. 24, 2007
`
`Sheet 2 of 15
`
`US 7,249,037 B2
`
`START
`
`CALL CLEARING HOUSE/MONEY MANAGER AND DOWNLOAD
`NET ASSET VALUES FOR ALL HYPOTHETICAL FUNDS
`
`--30
`
`UPDATE THE LIABILITY SIDE OF THE DATABASE
`
`--31
`
`SETTLE NEW INSTRUCTIONS WITH CLEARING
`HOUSE/MONEY MANAGER
`
`f..-- 32
`
`CALCULATE NEW BALANCES FOR ALL PARTICIPANTS BASED ON NEW
`UNIT VALUES FOR ASSETS & UPDATE VR WITH NEW BALANCES
`
`~33
`
`CALL THE ASSET MANAGER AND DOWNLOAD NET ASSET VALUES FOR
`ALL ASSET FUNDS, CONFIRM PREVIOUS DAYS TRADES AND CALCULATE f..-- 34
`NUMBER OF UNITS PER ASSET FUND AND THEIR CASH VALUE
`
`RECEIVE ADDITIONAL ASSET DATA AND RECONCILE
`ALL CHARGES INTERNALLY
`
`:--35
`
`UPDATE THE ASSET SIDE OF THE DATABASE
`
`--36
`
`40
`
`y
`
`ANY
`ASSET ALLOCATION
`OUTSIDE OF PRESET
`LIMITS?
`
`F 'IC.2A
`
`N
`
`A
`
`NOTIFY PLAN
`SPONSOR ABOUT ~ 42
`ASSET LEVELS
`I
`
`Ex. 1015 - 6/31
`
`

`
`U.S. Patent
`
`Jul. 24, 2007
`
`Sheet 3 of 15
`
`US 7,249,037 B2
`
`~
`
`GENERATE DAILY PAYMENT INSTRUCTIONS
`I
`FAX CONFIRMATION OF TRADES TO PARTICIPANTS AND SPONSOR,
`PROVIDE NEW NUMBER OF UNITS AND ACCOUNT BALANCES
`I
`SEND REPORTS VIA FAX/MODEM TRANSFER , OR PRINT
`REPORTS AND SEND BY MAIL OR COPY REPORTS TO
`REMOVABLE DIGITAL STORAGE AND SEND BY MAIL
`I
`CONVERT ACCOUNT INFORMATION INTO FORMAT
`FOR COMMERCIAL DATABASE SYSTEM
`I
`UPDATE DATABASE WITH NEW PARTICIPANT INFORMATION
`AND MUTUAL FUND INFORMATION
`I
`INFORMATION BUREAU
`IMPORT CENSUS INFORMATION FROM
`OR DEFERRAL INFORMATION FROM PLAN SPONSOR
`I
`UPDATE ASSET MANAGER & DATABASE WITH DATA
`RECEIVED THROUGHOUT THE DAY FROM THE BBS
`AND AUTOMATED VOICE RESPONSE UNIT
`
`~ 43
`
`!.._....--
`
`44
`
`~ 46
`
`f.--
`
`48
`
`--- 50
`
`~ 51
`
`---52
`
`0
`
`FIC.2B
`
`Ex. 1015 - 7/31
`
`

`
`U.S. Patent
`
`Jul. 24, 2007
`
`Sheet 4 of 15
`
`US 7,249,037 B2
`
`START
`
`SELECT AS A PRESENT ASSET GROUP ONE OF THE
`ASSET GROUPS WHICH
`IS USED TO COVER PLAN ~ 60
`SPONSORED FUND LIABILITIES
`
`CONTACT ASSET MANAGER TO DETERMINE THE PRESENT ~ 62
`CASH VALUE OF EACH TYPE OF ASSET (i.e., STOCK,
`MUTUAL FUND, INSURANCE POLICY) HELD BY THE PLAN
`SPONSOR FOR THE CURRENT ASSET GROUP
`
`READ FROM THE DATABASE THE NUMBER OF EACH TYPE OF f.-- 64
`INVESTMENT ASSOCIATED WITH THE CURRENT ASSET GROUP
`
`MULTIPLY THE NUMBER OF UNITS FOR EACH TYPE
`OF INVESTMENT BY THE DETERMINED CASH VALUE
`
`--
`
`66
`
`STORE THE RESULT OF THE MULTIPLICATION IN THE
`DATABASE AS THE PRESENT ASSET VALUE FOR THE ~ 68
`CURRENT ASSET GROUP
`
`70
`
`y
`
`MORE
`ASSET GROUPS?
`
`N
`
`END
`
`FIC.3
`
`Ex. 1015 - 8/31
`
`

`
`U.S. Patent
`
`Jul. 24, 2007
`
`Sheet 5 of 15
`
`US 7,249,037 B2
`
`START
`
`SELECT ONE OF THE PLAN SPONSORED
`HYPOTHETICAL FUNDS AS A CURRENT FUND ~ 80
`
`CONTACT INFORMATION PROVIDER (i.e., DOW JONES BBS) ---82
`
`TO DETERMINE THE PRESENT PER UNIT SELLING PRICE
`OF THE CURRENT FUND
`
`READ FROM THE DATABASE THE NUMBER OF OUT-
`STANDING UNITS ASSOCIATED WITH THE CURRENT ~ 84
`FUND THAT ARE HELD BY THE PLAN PARTICIPANTS
`
`MULTIPLY THE NUMBER OF OUTSTANDING UNITS
`FOR CURRENT FUND BY THE PRESENT PER UNIT
`SELLING PRICE
`
`---86
`
`STORE THE RESULT OF THE MULTIPLICATION
`IN THE DATABASE AS THE CURRENT LIABILITY
`OF THE CURRENT FUND
`
`---88
`
`90
`
`y
`
`MORE FUNDS?
`
`N
`
`END
`
`FIC.4
`
`Ex. 1015 - 9/31
`
`

`
`U.S. Patent
`
`Jul. 24, 2007
`
`Sheet 6 of 15
`
`US 7,249,037 B2
`
`AUOCATION SUMMARY ASSET GROUP
`
`REPORT DATE:
`
`8/17/95 2:10:03 PM
`
`TOTAL LIABIIJlY:
`TOTAL ASSET:
`
`$11,097,301,80
`$6,430,754.96
`
`UABIUlY
`
`---ASsET~
`
`BENCHMARK
`
`5%
`
`\
`106
`
`$1,019,648.75
`$955,274.50
`$1,317,666.56
`$1,958,238.09
`
`9.19%
`8.61%
`11.87%
`17.65%
`
`$5,250,827.90
`
`47.32%
`
`$1,923,315.03
`$1,932,315.03
`
`30.05%
`30.05% -117.27%1
`
`BALANCE DIFFERENCE:
`
`$3,318,512.87
`
`CEMENT
`PROJECT NAME:
`'tfZ MANUFACTURING
`SPONSOR NAME:
`PlAN GROUP NAME: GLOBAL WEALTH
`
`THE INCOME LINK
`
`DATE
`FUND NAME
`f/15/9~ PRIORITY BOND
`8
`SUPER LEVERAGED
`104 2/15/95
`INCOME & GROWTH
`2/15/95
`BALANCED
`2/15/95
`THE 'tfZ's RXED INCOME
`2/15/95
`
`102/
`
`THE LIQUID LINK
`
`DATE
`
`FUND NAME
`
`LIABIUlY
`
`---ASsET~
`
`CRITICAL MONEY MARKET
`8 104{ 2/15/95
`SMALL G/IJNS
`2/15/95
`2/15/95 m.'s LIQUID
`
`102/
`
`$1,545,746.80
`$1,455,964.06
`
`13.93%
`13.12%
`
`$3,001,710.86
`
`27.05%
`
`$1,283,124.95
`$1,283,124.95
`
`19.95%
`19.95% -17.10%1
`
`BALANCE DIFFERENCE:
`
`$1,718,586.91
`
`BENCHMARK
`
`5%
`
`\
`106
`
`THE STOCK FUND UNK
`
`DATE
`FUND NAME
`8 104{ 2/15/95 MONSTER GROWTH
`GROWTH
`2/15/95
`'ro.'s SUPER GROWTH
`2/15/95
`
`102/
`
`LIABILilY
`
`---ASsET~
`
`BENCHMARK
`
`5%
`
`\
`106
`
`$878,480.78
`$1,966,282.36
`
`7.92%
`17.72%
`
`$2,844,763.14
`
`25.63%
`
`$3,215,324.98
`$3,215,324.98
`
`BALANCE DIFFERENCE:
`
`50.00%
`5o.oo% -124.36% I
`$370,561.84
`
`TOTALS:
`
`ll11,o97,3o1.9o I
`FIC.5
`
`116,430,764.961
`
`Ex. 1015 - 10/31
`
`

`
`U.S. Patent
`
`Jul. 24, 2007
`
`Sheet 7 of 15
`
`US 7,249,037 B2
`
`START
`
`CONTACT ASSET MANAGER OF THE DEFINED BENEFIT PlAN ---- 110
`
`REQUEST CURRENT CASH VALUES OF INSURANCE
`POLICIES COVERING EMPLOYEES IF EQUITY IS REMOVED
`
`f.--- 112
`
`INSURANCE
`REQUEST CURRENT CASH VALUE OF
`IF, FOR EACH
`POLICIES COVERING EACH EMPLOYEE
`EMPLOYE[ THE EMPLOYEE WERE TO DIE
`
`f.--- 114
`
`IMMEDIATE AND
`INDICATING THE
`GENERATE ASSET RANGE
`POTENTIAL VALUES OF THE DEFINED BENEFIT PLAN
`
`f.---
`
`116
`
`UPDATE ASSET RANGE
`
`IN DATABASE
`
`---- 118
`
`END
`
`FIC.6
`
`Ex. 1015 - 11/31
`
`

`
`U.S. Patent
`
`Jul. 24, 2007
`
`Sheet 8 of 15
`
`US 7,249,037 B2
`
`---- 120
`
`----
`
`126
`
`START
`I
`FOR EACH DEFERRAL AT THE PROMISED INTEREST RATE FOR
`THE DEFINED BENIFIT PLAN, CALCULATE THE AGE 65 PAYOUT
`I
`MULTIPLY AGE 65 PAYOUT BY PROBABILITY OF THE CORRESPONDING
`PARTICIPANT DYING AT EACH AGE BEFORE 65 TO DETERMINE EXPECTED ~ 122
`PREMATURE PAYOUT AND MULTIPLY BY THE PROBABILITY OF REACHING
`AGE 65 TO DETERMINE EXPECTED FULL PAYOUT
`I
`DETERMINE EARLY WITHDRAWAL PAYOUT FOR EACH AGE BEFORE 55 FOR EACH
`DEFERRAL IF THE CORRESPONDING PARTICPANT WITHDRAWS FROM THE PROGRAM ---- 124
`I
`MULTIPLY WITHDRAWAL PAYOUT BY PROBABILITY OF WITHDRAWAL AT
`EACH AGE BEFORE 55 TO DETERMINE THE EXPECTED/ESTIMATED PAYOUT
`I
`DETERMINE EARLY RETIREMENT PAYOUT FOR EACH AGE AFTER~ 55
`AND BEFORE 65 FOR EACH DEFERRAL IF THE CORRESPONDING
`PARTICIPANT RETIRES EARLY FROM THE PROGRAM
`I
`MULTIPLY EARLY RETIREMENT PAYOUT BY PROBABILITY OF EARLY
`RETIREMENT FOR EACH AGE AFTER 55 AND BEFORE 65 TO DETERMINE
`THE EXPECTED/ESTIMATED EARLY RETIREMENT PAYOUT
`I
`SUM TOTAL FROM STEPS 122, 126 AND 130 TO DETERMINE TOTAL ~
`132
`EXPECTED/ESTIMATED LIABILITY FOR THE DEFINED BENIFIT PLAN
`l
`UPDATE ESTIMATED LIABILITY IN DATABASE
`
`---- 128
`
`---- 130
`
`f-.- 134
`
`FIC.7
`
`I
`END
`
`Ex. 1015 - 12/31
`
`

`
`U.S. Patent
`
`Jul. 24, 2007
`
`Sheet 9 of 15
`
`US 7,249,037 B2
`
`DEFINED BENEFIT ALLOCATION SUMMARY
`
`140
`CURRENT CASH/
`VALUE
`
`142
`DEATH BENEFIT/
`VALUE
`
`$ 27,000
`
`ESTIMATED ---144
`LIABILITY
`
`$ 45,000
`
`146
`
`BENCHMARK /
`
`$ 10,000
`
`FIC.B
`
`Ex. 1015 - 13/31
`
`

`
`U.S. Patent
`
`Jul. 24, 2007
`
`Sheet 10 of 15
`
`US 7,249,037 B2
`
`2
`
`154
`
`FIC.9
`
`Ex. 1015 - 14/31
`
`

`
`DAILY CYCLE
`
`SKYCOMPJU
`ADMINISTRATION SYSTEM
`
`ASSET
`MANAGER
`
`REPORTING
`
`I REPORTS ARE SENT TO CLIENT BASED
`~ ~
`ON SCHEDULE CHOSEN
`·FAX
`~
`(fT f!}
`·MODEM TRANSFER
`. HARD COPY /MAIL D
`·DISKETIE
`
`[5
`
`SERVER
`
`D Skycomp GENERAliS Skfomp C!!CUIAIES
`
`I
`
`CLIENT
`
`FIC./0
`
`ALLOCATIONS
`
`c=J SPONSOR CONNECTION (NOT NECESSARILY DAILY)
`c=J ASSET MANAGER CONNECTION (NOT NECESSARILY DAILY)
`
`1fiTft CLEARING
`1IJl1l HOUSE
`
`CALCULATE
`SkyComp CALCULATES NEW BALANCES FOR ALL \ BALANCES
`PARTICIPANTS BASED ON NEW UNIT VALUES
`n
`
`._.A"""f"
`
`VRU EXPORT
`
`e •
`
`00
`•
`~
`~
`~
`
`~ = ~
`
`2' :-
`~ ...
`
`N
`
`N
`0
`0
`-....l
`
`('D
`('D
`
`rFJ =(cid:173)
`.....
`....
`....
`0 .....
`....
`Ul
`
`d
`rJl
`-....l
`'N
`~
`
`\C = w
`-....l = N
`
`I
`
`,.
`
`rFil
`r ~
`ASSET
`MANAGER
`
`DAILY PAYMENT
`INSTRUCTIONS
`
`THE PARTICIPANTS ASSET
`ALLOCATION AND ALERTS THE
`EMPLOYER IF ALLOCATION RATIO
`
`I I IS HIGHER OR LOWER THAN PRE-
`~
`
`DETERMINED LEVELS
`
`Ex. 1015 - 15/31
`
`

`
`U.S. Patent
`
`Jul. 24, 2007
`
`Sheet 12 of 15
`
`US 7,249,037 B2
`
`SYSTEM PROCESSES
`CENSUS INFORMATION
`I
`SYSTEM DETERMINES
`PREMIUM/FACE AMOUNTS
`I
`SYSTEM CALCUlATES
`INITIAL PREMIUM CHARGES
`I
`SYSTEM NOTIFIES INVESTMENT
`MANAGER OF AMOUNT TO INVEST
`I
`INVESTMENT MANAGER NOTIFIES
`SUB-ADVISOR AND WIRES MONEY
`I
`SUB-ADVISOR PURCHASES SECURITIES AND SENDS
`DOCUMENTATIONS TO
`INVESTMENT MANAGER
`I
`SVP WRITER (IF APPLICABLE) CONTACTS
`SUB-ADVISOR FOR
`INFORMATION REGARDING
`YIELD-TO-MATURITY (YTM) OF SECURITIES
`I
`INVESTMENT MANAGER CREATES INITIAL UNIT
`VALUE OF FUND, COMMUNICATES TO SYSTEM
`I
`SYSTEM STORES INITIAL
`UNIT VALUE OF POLICY
`
`FIC.11
`
`------ 1104
`
`1108
`
`------
`
`1112
`
`------
`
`1116
`
`------
`
`v- 1120
`
`v- 1124
`
`v- 1126
`
`------ 1128
`
`------ 1130
`
`Ex. 1015 - 16/31
`
`

`
`U.S. Patent
`
`Jul. 24, 2007
`
`Sheet 13 of 15
`
`US 7,249,037 B2
`
`SYSTEM CALCUlATES FEES FOR MORTALITY -EXPENSE (M&E)
`ACCOUNT MANAGEMENT, SUB-ADVISOR AND SVP WRITER,
`IF APPLICABLE
`
`~ 1204
`
`SYSTEM CALCULATES CREDITS DUE TO CURRENT DAY'S VALUE
`1212
`OF SVP, (NOTE: FOR NON-SVP FUNDS, THE CREDIT EQUALS ~
`YESTERDAY'S GROWTH
`IN THE UNDERLYING SECURITIES
`
`SYSTEM IMPORTS CURRENT DAY'S INVESTMENT VALUE AND VALUE
`OF UNDERLYING SECURITIES FROM THE INVESTMENT MANAGER
`
`----
`
`1216
`
`SYSTEM NOTIFIES SVP WRITER OF CURRENT DAY'S INVESTMENT
`VALUE AND VALUE OF UNDERLYING SECURITIES
`
`~ 1218
`
`SYSTEM CALCUlATES POLICY VALUE, AND CALCULATES AND STORES
`CURRENT DAY'S POLICY UNIT VALUE ACCORDING TO:
`UNIT VALUE (CURRENT DAY) = VALUE (CURRENT DAY)/UNITS
`
`1--1219
`
`1220 ----
`
`INVESTMENT MANAGER
`REMOVES M&E FEES,
`ACCOUNT MANAGEMENT FEES,
`POLICY SUB-ADVISER FEES
`AND SVP FEES FROM
`THE VALUE OF THE
`UNDERLYING SECURITIES
`
`SYSTEM ACCUMULATES M&E,
`ACCOUNT MANAGEMENT,
`INVESTMENT MANAGEMENT
`AND SVP FEE UNITS DAILY,
`FOR REDEMPTION AT THE
`END OF THE MONTH
`
`---- 1222
`
`FIC.12
`
`Ex. 1015 - 17/31
`
`

`
`U.S. Patent
`
`Jul. 24, 2007
`
`Sheet 14 of 15
`
`US 7,249,037 B2
`
`CARRIER, ACCOUNT MANAGER, SVP WRITER, AND SUB-ADVISOR SELL
`"FEE UNITS" TO
`INVESTMENT MANAGER AT THE DAY'S INVESTMENT
`UNIT VALUE.
`INVESTMENT MANAGER ADJUSTS THE NUMBER
`OF
`INVESTMENT UNITS HELD BY EACH
`
`L-- 1304
`
`INVESTMENT MANAGER REMOVES THE VALUE OF THE "FEE UNITS"
`
`FROM THE UNDERLYING SECURITIES VALUE AND TRANSFERS CASH TO --- 1308
`
`THE CARRIER, ACCOUNT MANAGER, SVP WRITER AND SUB-ADVISER
`
`FIC.13
`
`POLICY OWNERS SELL POLICY UNITS TO SYSTEM TO PAY FOR MONTHLY
`COST FOR INSURANCE (COl) FEES AND ADMINISTRATION FEES. SYSTEM ~ 1404
`ADJUSTS THE NUMBER OF POLICY UNITS HELD BY THE POLICY OWNER
`
`SYSTEM SELLS EQUIVALENT DOLLAR AMOUNT OF INVESTMENT UNITS.
`INVESTMENT MANAGER ADJUSTS THE NUMBER OF THE INVESTMENT ~ 1408
`UNITS THEN HELD BY THE SYSTEM
`
`INVESTMENT MANAGER REMOVES THE VALUE OF THE
`COl AND ADMIN. FEES FROM THE UNDERLYING SECURITIES
`VALUE AND TRANSFERS CASH TO CARRIER
`
`--- 1412
`
`SYSTEM CALCULATES ONGOING
`MORTALITY RESERVE ACTIVITY
`
`1416
`~
`
`FIC.14
`
`Ex. 1015 - 18/31
`
`

`
`U.S. Patent
`
`Jul. 24, 2007
`
`Sheet 15 of 15
`
`US 7,249,037 B2
`
`INVESTMENT
`INFORMATION FROM
`SVP WRITER COLLECTS
`MANAGER REGARDING BOOK AND MARKET VALUE
`
`f.-- 1504
`
`SVP WRITER COLLECTS INFORMATION FROM SUB-ADVISOR REGARDING
`DURATION OF UNDERLYING SECURITIES AND YIELD-TO-MATURITY
`
`~ 1508
`
`FIC.IS
`
`SVP WRITER CALCULATES TARGETED
`RETURN FOR UPCOMING QUARTER
`
`~1604
`
`FIC./6
`
`SYSTEM PROCESSES
`DEATH CLAIMS
`
`FIC./7
`
`f----1704
`
`Ex. 1015 - 19/31
`
`

`
`US 7,249,037 B2
`
`1
`SYSTEM FOR MANAGING A STABLE
`VALUE PROTECTED INVESTMENT PLAN
`
`BACKGROUND OF THE INVENTION
`
`25
`
`1. Field of the Invention
`This invention relates to an automated system for track(cid:173)
`ing, reconciling and administering the values of life insur(cid:173)
`ance policies in separate account, including stable value
`protected funds.
`2. Discussion of the Background
`For many years the majority of employee benefits have
`been funded through the purchase of stocks, mutual funds,
`corporate owned life insurance (COLI) and annuities. The
`value of these assets was generally provided on a quarterly 15
`or monthly basis, and the liabilities of these benefit plans
`have generally been made available on an annual or perhaps
`quarterly basis. Therefore, plan sponsors have had to wait
`six to twelve months for information about the current
`fnnded status of a benefit plan. In addition, changes in