WO2001075760A1

WO2001075760A1 - System and method for computerized financial transactions

Info

Publication number: WO2001075760A1
Application number: PCT/US2001/009850
Authority: WO
Inventors: James Ryan; Jeffrey Mcgovern; W. Birks Erskine
Original assignee: Nobodydoes.Com, Inc.
Priority date: 2000-03-31
Filing date: 2001-03-28
Publication date: 2001-10-11
Also published as: AU2001251036A1

Abstract

A system and method for implementing computerized financial transactions. Information relating to relevant parameters of a financial transaction is obtained over acommunications network. A formatted matrix of data relating to the financial transaction is generated, and the formatted matrix is transmitted over the network fordisplay. The formatted matrix may be displayed to the consumer on a display (20) of the client system (100). The formatted matrix has a plurality of columns corresponding to a first one of the relevant parameters of the financial transaction. Each of the columns corresponds to a particular value for the first one of the relevant parameters. The formatted matrix also has a plurality of rows corresponding to a second one of the relevant parameters of the financial transaction. Each of the rows corresponds to a particular value for the second one of the relevant parameters. The formatted matrix is populated with data relating to a third parameter of the financial transaction. The system and method of the pressente invention are described in relation to financing and insurance transactions.

Description

SYSTEM AND METHOD FOR COMPUTERIZED FINANCIAL TRANSACTIONS

BACKGROUND OF THE INVENTION

1. Field of the Invention

This invention relates generally to financial transactions and, more specifically, to a system and method for financial transactions that are implemented over a computer network.

2. Background Description

Financial transactions typically involve several relevant parameters. For example, a financing transaction, such as a loan, involves a principal amount to be financed, an interest rate, and a financing period or term. An insurance transaction can involve a face value of the insurance policy, a cash value, and a period or term over which the cash value of the insurance policy accumulates.

In considering a particular financial transaction, a prudent consumer is often interested in examining the interrelationship among the several parameters of the financial transaction. In the context of a financing transaction, the consumer may, for example, be willing to make a certain monthly payment and may be interested in the principal amounts that can be borrowed for that monthly payment given particular interest rates and financing periods. In the context of an insurance transaction, the consumer may, for example, be interested in the annual premiums that correspond to particular combinations of cash value and cash value accumulation periods.

The advent of computer networks, most importantiy the Internet, with their unprecedented ability to facilitate communication, makes it possible to enter into a wide range of financial transactions electronically. There is, however, currently no location or "Web site" on the Internet that enables a consumer to examine the interrelationship among the several parameters of a financial transaction. Accordingly, there is a need for a system and method that enables a consumer to examine the interrelationship among the several parameters of a financial transaction prior to consummating the financial transaction using a computer network.

SUMMARY The present invention is directed to a system and method that satisfies the need for a consumer to examine the interrelationship among the several parameters of a financial transaction prior to consummating the financial transaction using a computer network. The consumer can specify which parameters of interest in the financial transaction should be fixed in order to examine the effect on other parameters of interest. The system and method according to the present invention allows the consumer to examine the interrelationship among the several parameters of a financial transaction through the use of a formatted matrix which provides the consumer with information relating to the parameters of the financial transaction.

According to an embodiment of the present invention, a method for implementing a financial transaction using a communications network comprises the steps of: obtaining information relating to relevant parameters of the financial transaction over the communications network; generating a formatted matrix of data relating to the financial transaction; and transmitting the formatted matrix over the network for display. The step of generating the formatted matrix may comprise the step of generating a plurality of columns corresponding to a first one of the relevant parameters of the financial transaction, each of the columns corresponding to a particular value for the first one of the relevant parameters. The step of generating the formatted matrix may further comprise the step of generating a plurality of rows corresponding to a second one of the relevant parameters of the financial transaction, each of the rows corresponding to a particular value for the second one of the relevant parameters. The step of generating the formatted matrix may further comprise the step of populating the formatted matrix with data relating to a third parameter of the financial transaction. According to another embodiment of the present invention, a method for implementing a loan using a communications network comprises the steps of: obtaining information relating to relevant parameters of the loan over the communications network; generating a formatted matrix of data relating to the loan; and transmitting the formatted matrix over the communications network for display. The step of generating the formatted matrix may comprise the step of generating a plurality of columns corresponding to a first one of the relevant parameters of the loan, each of the columns corresponding to a particular value for the first one of the relevant parameters. The step of generating the formatted matrix may further comprises the step of generating a plurality of rows corresponding to a second one of the relevant parameters of the loan, each of the rows corresponding to a particular value for the second one of the relevant parameters. The step of generating the formatted matrix may further comprise the step of populating the formatted matrix with data relating to a third parameter of the loan.

The first one of the relevant parameters of the formatted matrix may comprise the amount of the loan; the second one of the relevant parameters may comprise the term of the loan; and the third one of the relevant parameters may comprise the monthly payments under the loan. In an alternative arrangement of the formatted matrix, the first one of the relevant parameters may comprise the interest rate associated with the loan; the second one of the relevant parameters may comprise the term of the loan; and the third one of the relevant parameters may comprise the amount of the loan. In a further alternative arrangement of the formatted matrix, the first one of the relevant parameters may comprise the amount of the loan; the second one of the relevant parameters may comprise the interest rate associated with the loan; and the third one of the relevant parameters may comprise the monthly payments under the loan. In yet another alternative arrangement of the formatted matrix, the first one of the relevant parameters may comprise the term of the loan; the second one of the relevant parameters may comprise the loan amount; and the third one of the relevant parameters may comprise the balance remaining under the loan.

The method may further comprise the steps of generating a payment schedule for the loan responsive to the selection of any of the data relating to the third parameter of the financial transaction and transmitting the payment schedule for display.

According to yet another embodiment of the present invention, a method for implementing an insurance policy using a communications network comprises the steps of: obtaining information relating to relevant parameters of the insurance policy over the communications network; generating a formatted matrix of data relating to the insurance policy; and transmitting the formatted matrix over the communications network for display. The step of generating the formatted matrix may comprise the step of generating a plurality of columns corresponding to a first one of the relevant parameters of the insurance policy, each of the columns corresponding to a particular value for the first one of the relevant parameters. The step of generating the formatted matrix may further comprise the step of generating a plurality of rows corresponding to a second one of the relevant parameters of the insurance policy, each of the rows corresponding to a particular value for the second one of the relevant parameters.^' The step of generating the formatted matrix may further comprise the step of populating the formatted matrix with data relating to a third parameter of the insurance policy.

The first one of the relevant parameters of the formatted matrix may comprise the cash value of the insurance policy; the second one of the relevant parameters may comprise the cash value accumulation period of the insurance policy; and the third one of the relevant parameters may comprise the annual premiums under the insurance policy.

The method may further comprise the steps of generating a premium schedule for the insurance policy and transmitting the premium schedule for display. According to an even further embodiment of the invention, a method for implementing an insurance policy to a consumer using a communications network comprises the steps of: generating an on-line application form for the insurance policy; receiving information entered in the on-line application form by the consumer; and determining whether the consumer meets applicable underwriting standards based on the information. The method may further comprise the step of sending an e-mail message to the consumer's current insurance carrier. The method may also further comprise the step of generating a digital identification code using the information to identify the consumer. According to an embodiment of the present invention, a system for implementing a financial transaction comprises: a computer system having a processor and a memory for storing program instructions executable by the processor to adapt the computer system to obtain information relating to relevant parameters of the financial transaction; to generate a formatted matrix of data relating to the financial transaction; and to transmit the formatted matrix for display. The system may be adapted to generate a plurality of columns corresponding to a first one of the relevant parameters of the financial transaction for the formatted matrix, each of the columns corresponding to a particular value for the first one of the relevant parameters. The system may be further adapted to generate a plurality of rows corresponding to a second one of the relevant parameters of the financial transaction for the formatted matrix, each of the rows corresponding to a particular value for the second one of the relevant parameters. The system may be adapted to populate the formatted matrix with data relating to a third parameter of the financial transaction. According to another embodiment of the present invention, a system for implementing a loan comprises a computer system having a processor and a memory for storing program instructions executable by the processor to adapt the computer system to obtain information relating to relevant parameters of the loan; to generate a formatted matrix of data relating to the loan; and to transmit the formatted matrix for display. The system may be adapted to generate a plurality of columns corresponding to a first one of the relevant parameters of the loan for the formatted matrix, each of the columns corresponding to a particular value for the first one of the relevant parameters. The system may be further adapted to generate a plurality of rows corresponding to a second one of the relevant parameters of the loan for the formatted matrix, each of the rows corresponding to a particular value for the second one of the relevant parameters. The system may be adapted to populate the formatted matrix with data relating to a third parameter of the loan.

The first one of the relevant parameters of the formatted matrix may comprise the amount of the loan; the second one of the relevant parameters may comprise the term of the loan; and the third one of the relevant parameters may comprise the monthly payments under the loan. In an alternative arrangement of the formatted matrix, the first one of the relevant parameters may comprise the interest rate associated with the loan; the second one of the relevant parameters may comprise the term of the loan; and the third one of the relevant parameters may comprise the amount of the loan. In a further alternative arrangement of the formatted matrix, the first one of the relevant parameters may comprise the amount of the loan; the second one of the relevant parameters comprises the interest rate associated with the loan; and the third one of the relevant parameters may comprise the monthly payments under the loan.

The system may be further adapted to generate a payment schedule for the loan responsive to the selection of any of the data relating to the third parameter of the financial transaction and to transmit the payment schedule for display.

According to yet another embodiment of the present invention, a system for implementing an insurance policy comprises: a computer system having a processor and a memory for storing program instructions executable by the processor to adapt the computer system to obtain information relating to relevant parameters of the insurance policy; to generate a formatted matrix of data relating to the insurance policy; and to transmit the formatted matrix for display. The system may be adapted to generate a plurality of columns corresponding to a first one of the relevant parameters of the insurance policy for the formatted matrix, each of the columns corresponding to a particular value for the first one of the relevant parameters. The system may be further adapted to generate a plurality of rows corresponding to a second one of the relevant parameters of the insurance policy for the formatted matrix, each of the rows corresponding to a particular value for the second one of the relevant parameters. The system may be further adapted to populate the formatted matrix with data relating to a third parameter of the insurance policy.

The first one of the relevant parameters may comprise the cash value of the insurance policy; the second one of the relevant parameters may comprise the cash value accumulation period of the insurance policy; and the third one of the relevant parameters may comprise the annual premiums under the insurance policy.

The system may be further adapted to generate a premium schedule for the insurance policy and to transmit the premium schedule for display.

According to an even further embodiment of the present invention, a system for implementing an insurance policy comprises : a computer system having a processor and a memory for storing program instructions executable by the processor to adapt the computer system to generate an on-line application form for the insurance policy; to receive information entered in the on-line application and relating to a purchaser of the insurance policy; and to determine whether the purchaser meets applicable underwriting standards based on the information.

The system may be adapted to send an e-mail message to the purchaser's current insurance carrier. The system may be further adapted to generate a digital identification code using the information to identify the purchaser.

The above, and other features, aspects, and advantages of the present invention will become apparent from the following description read in conjunction with the accompanying drawings, in which like reference numerals designate the same elements. BRIEF DESCRIPTION OF THE DRAWINGS In the drawings:

FIGURE 1 shows a representative environment in which embodiments of the present invention may be implemented; FIGURE 1A shows a block diagram useful for understanding the representative environment shown in FIG. 1;

FIGURE IB shows a block diagram useful for understanding the representative environment shown in FIG. 1;

FIGURE 2 shows a flowchart of the steps performed by a system and method according to an embodiment of the present invention;

FIGURE 3 shows an exemplary formatted matrix of monthly loan payments according to an embodiment of the present invention;

FIGURE 3A shows another exemplary formatted matrix of monthly loan payments according to an embodiment of the present invention; FIGURE 4 shows an exemplary formatted matrix of loan amounts according to an embodiment of the present invention;

FIGURE 5 shows an exemplary formatted matrix of monthly loan payments according to an embodiment of the present invention;

FIGURE 6 shows an exemplary formatted matrix of loan balances due according to an embodiment of the present invention;

FIGURE 7 shows an exemplary payment schedule for a loan according to an embodiment of the present invention;

FIGURE 8 shows a flowchart of the steps performed by a system and method according to another embodiment of the present invention; FIGURE 9 shows an exemplary formatted matrix of annual insurance premiums according to an embodiment of the present invention;

FIGURE 10 shows an exemplary schedule of annual insurance premiums according to an embodiment of the present invention; and

FIGURE 11 shows a flowchart of the steps performed by a consumer in purchasing an insurance policy according an embodiment of the present invention. DESCRIPTION OF THE PREFERRED EMBODIMENTS A representative environment in which embodiments of the present invention may be implemented is shown in FIGURE 1. The representative environment includes at least one client system generally designated 100 connectable to a server 200 over a computer network 300 such as, for example, the Internet . The network 300 allows the client system 100 to communicate with the server 200. The client system 100 may be located at a user's home or office and is connectable to the Internet through an Internet Service Provider (ISP), an online service provider (e.g., America Online®, CompuServe®, or Prodigy Internet®), a TI line, a Digital Subscriber Line (DSL), a cable modem, satellite link, or other available connection means.

As further shown in FIGURE 1, the client system 100 is preferably a personal computer, such as a desktop, notebook, or palmtop device, running one of many well known operating systems and equipped with Internet browsing capabilities. However, any terminal equipped with Internet browsing capabilities may serve as the client system 100. The client system 100 preferably includes a central processing unit (CPU) 10, a display 20 having a graphical user interface (GUI), a keyboard 30, and a pointing device 40.

FIGURES 1A and IB shown in block diagram form the apparatus of FIGURE 1. The client system 100 of FIG. 1 includes CPU 10 for executing program instructions. These program instructions can be stored in RAM 12, ROM 14, and/or mass storage device 16 for access by CPU 101. Also connected to CPU 10 is monitor 20, keyboard 30 and mouse 40 for allowing a customer to manipulate and input information. Upon appropriate program instructions, the CPU 10 of the client system 100 outputs to the network 300 information provided in accordance with the present invention, as will be set forth in greater detail below.

Mass storage device 16, such as a hard disk, disk array, or PC Card storage device, is connected in the client system 100 for access by CPU 10. Although depicted here as directly connected to CPU 10, such direct connection need not be used. Alternatively, there may be intervening devices, or mass storage device 16 may instead be connected to network 300, and thus separate from, but still be accessible by, CPU 10. Typically, mass storage device 16 stores program instructions which are accessed and executed by CPU 10. In addition, mass storage device 116, RAM 12, and/or and ROM 14 can store data which are accessed and processed by CPU 10 in accordance with the program instructions. Other program instructions and data may also be stored on mass storage device 16 and executed by CPU 10 as designated by the customer.

The Web server 200 of FIG. IB includes CPU 202 for executing program instructions. These program instructions can be stored in RAM 204, ROM 206, and/or mass storage device 208 for access by CPU 202. Upon appropriate program instructions, CPU 202 outputs to the network 300 information generated in accordance with the present invention, as will be set forth in greater detail below.

Mass storage device 208, such as a hard disk, disk array, or PC Card storage device, is connected for access by CPU 202. Although depicted here as directly connected to CPU 202, such direct connection need not be used. Alternatively, there may be intervening devices, or mass storage device 208 may instead be connected to network 300, and thus separate from, but still be accessible by, CPU 202. Typically, mass storage device 208 stores program instructions which are accessed and executed by CPU 202. In addition, mass storage device 208, RAM 204, and/or and ROM 206 can store data which are accessed and processed by CPU 202 in accordance with the program instructions.

The client system 100 of FIGURE 1 also preferably incorporates Internet tools, which include electronic mail (e-mail), file transfer, and browsing capabilities. As is well known, Internet browsing may be effected using the Hypertext Transfer Protocol (HTTP) or such other protocols which provide users access to multimedia files using Hypertext Markup Language (HTML) or any other hereinafter developed or adopted markup, scripting, or alternative language. Two such markup languages include Extensible Markup Language (XML) and the Standard Generalized Markup Language (SGML) . Referring back to FIGURE 1, the Internet Web server 200 supports a collection of related documents that together comprise a "Web site". The Web server 200 is accessible through the World Wide Web or Internet-type network in a known manner. In the Internet paradigm, a network path to a Web server 200 is identified by a so-called Uniform Resource Locator (URL) having a special syntax for defining a network connection. Use of an HTML-compatible browser (e.g., Netscape Navigator® or Microsoft Internet Explorer®) at a client system 100 involves the specification of a link via the URL. In response, the client system 100 makes a request to the Web server identified in the link, and receives in return a document formatted according to HTML (or a similar markup language, such as SGML or XML).

In a transaction using a computerized system and method according to an embodiment of the present invention, a consumer operating a client system 100 initiates contact with the lender's or insurer's Web server 200 over the computer network 300. Once a connection has been established between the consumer's client system 100 and the lender's or insurer's Web server 200, the customer may begin to navigate a plurality of screens of the lender's or insurer's Web site and to enter into the appropriate fields of those screens information relating to a loan or an insurance policy. The screens are preferably formatted in HTML (with incorporated Java applets), XML, or SGML for facilitating navigation among the screens of the Web site and for facilitating the entry of information into the fields of those screens. As with most HTML Web sites, navigation within the Web site is accomplished by clicking on so-called "hyperlinks" or "hypertext links" to move among the different screens of the Web site. FIGURE 2 shows a flow chart depicting the overall operation of the apparatus of FIGURE 1 according to an embodiment of the present invention involving a loan transaction. If the consumer is interested in obtaining a loan, the consumer accesses the lender's Web server 200 by inputting the appropriate URL into the browser of the client system 100. Once the connection between the client system 100 and the server 200 has been established, in Step 401 the client system 100 displays a screen to enable the consumer to enter the relevant parameters of the loan. For example, the consumer can enter the amount to be borrowed, the term of the loan, the interest rate of the loan, and the desired monthly payment. According to an embodiment of the present invention, the information provided by the consumer is stored on either the server 200 or the client system 100. The information can be stored as a database record on the server 200. If saved on the client system 100, the information can be saved as a file or, in a presently preferred embodiment, the information can be stored as a "cookie" on the client system 100 after obtaining the consumer's permission to do so. According to an embodiment of the present invention, the consumer can specify which of the parameters of the loan are to be fixed in order to view the effect on another parameter. The consumer needs to change only those parameters that he wishes to vary. In one example, the consumer may choose to fix the amount to be borrowed, the term of the loan, and the interest rate in order to determine the monthly payments. For example, a consumer may be interested in borrowing $90,000 at a rate of 8% for a period of 25 years. This information is entered by the consumer using the client system 100 and is then transmitted by the client system 100 to the lender's server 200 over the network 300. In accordance with an embodiment of the present invention, the CPU 202 of the server 200 calculates and displays in Steps 402 and 403 a formatted matrix of available monthly payments according to a series of program instructions stored therein and transmits this information to the client system 100. The formatted matrix may be displayed to the consumer on the display 20 of the client system 100 in the manner shown in FIGURE 3 using any technique that is or may become well-known to those having ordinary skill in the art, including but not limited to Java Script or the Common Gateway Interface (CGI). '

The exemplary formatted matrix shown in FIGURE 3 displays the range of monthly payments for loan amounts ranging from $60,000 to $120,000, which correspond to the columns of the formatted matrix, and for terms ranging from 5 years to 45 years, which correspond to the rows of the formatted matrix. It will be appreciated by those having skill in the art that the loan amount entered by the consumer can be incremented and decremented in any predetermined manner according to well-known techniques to provide the range of loan amounts for the formatted matrix of FIGURE 3. Similarly, the term of the loan entered by the consumer can also be incremented and decremented in any predetermined manner according to well-known techniques to provide the range of terms for the formatted matrix of FIGURE 3. FIGURE 3A shows the formatted matrix of FIGURE 3 for a loan amount of $150,000.

In another example, the consumer may choose to fix the term of the loan, the monthly payment, and the interest rate of the loan to determine the range of amounts that can be borrowed. For example, the consumer may be interested in a loan at 8% for 25 years and may be willing to make a monthly payment of $694.63. The formatted matrix in FIGURE 4 displays the range of amounts that can be borrowed for interest rates ranging from 7.25% to 8.75%, which correspond to the columns of the formatted matrix, and for terms ranging from 5 years to 45 years, which correspond to the rows of the formatted matrix, at a monthly payment of $694.63. It will be appreciated by those having skill in the art that the interest rate entered by the consumer can be incremented and decremented in any predetermined manner according to well-known techniques to provide the range of interest rates for the formatted matrix of FIGURE 4. Similarly, the term of the loan entered by the consumer can also be incremented and decremented in any predetermined manner according to well-known techniques to provide the range of terms for the formatted matrix of FIGURE 4.

In a further example, the consumer may choose to fix the term of the loan, the loan amount, and the interest rate of the loan to determine the monthly payments. The formatted matrix in FIGURE 5 displays the range of monthly payments for interest rates ranging from 6% to 10%, which correspond to the rows of the formatted matrix, and for principal amounts ranging from $60,000 to $120,000, which correspond to the columns of the formatted matrix. It will be appreciated by those having skill in the art that the interest rate entered by the consumer can be incremented and decremented in any predetermined manner according to well-known techniques to provide the range of interest rates for the formatted matrix of FIGURE 5. Similarly, the amount of the loan entered by the consumer can also be incremented and decremented in any predetermined manner according to well-known techniques to provide the range of terms for the formatted matrix of FIGURE 5.

In an even further example, the consumer may choose to fix the term of the loan, the loan amount, and the monthly payment under the loan to determine the balances remaining under the loan. The formatted matrix in FIGURE 6 displays the range of balances due for a loan term ranging from 5 years to 45 years, which correspond to the rows of the formatted matrix, and for loan amounts ranging from $120,000 to $180,000, which correspond to the columns of the formatted matrix, with a fixed monthly payment of $1,200. It will be appreciated by those having skill in the art that the loan term entered by the consumer can be incremented and decremented in any predetermined manner according to well-known techniques to provide the range of interest rates for the formatted matrix of FIGURE 6. Similarly, the amount of the loan entered by the consumer can also be incremented and decremented in any predetermined manner according to well-known techniques to provide the range of terms for the formatted matrix of FIGURE 6. According to an embodiment of the present invention, the consumer can perform real-time updates of the data values in the formatted matrices of FIGURES 3-6 by changing the parameters of the loan using scroll bars that are provided with the formatted matrices. A different scroll bar may be provided for each of the loan parameters. For example, as shown in FIGURE 3, a scroll bar is provided for each of the following loan parameters: the total purchase price, the cash down, the amount financed, the term of the loan, and the interest rate. The consumer can use the mouse 40 of the client system 100 to adjust the position of the scroll bar. In adjusting the position of the scroll bar, the associated loan parameter is incremented or decremented by a predetermined amount. The matrices shown in FIGURES 3-6 are updated to include the incremented or decremented values of the loan parameters and the values that are calculated using the new loan parameters. The consumer can thus quickly and conveniently have generated by the server 200 and displayed on the display 20 of the client system 100 different matrices to compare different combinations of loan parameters to choose a loan that best suits that customer's needs.

The consumer can obtain further information on the payment schedule of a particular loan by double-clicking on a particular cell of a formatted matrix of interest. For example, in the formatted matrix shown in FIGURE 3, the consumer may be interested in the $90,000 loan at 8% for 25 years with the corresponding monthly payment of $694.63. The consumer can double-click on the $694.63 amount in the formatted matrix. The consumer's selection is transmitted to over the network 300, and the CPU 202 of the server 200 responds according to Steps 404 and 404 of FIGURE 2 by generating and transmitting to the client system 100 for display on the display 20 a payment schedule for the loan. An exemplary payment schedule for the aforementioned loan of FIGURE 3 is shown in FIGURE 7, and includes the number of payments and, for each of the payments, the amount of the payment applied to principal and to interest, and the balance remaining on the loan. After examining the payment schedule, the consumer can apply for the loan on-line and receive a decision on his application in accordance with any such techniques that are well-known in the art.

FIGURE 8 shows a flow chart depicting the overall operation of the apparatus of FIGURE 1 according to an embodiment of the present invention involving an insurance transaction. If the consumer is interested in obtaining an insurance policy, for example a whole-life insurance policy, the consumer accesses the lender's Web server 200 by inputting the appropriate URL into the browser of the client system 100. Once the connection between the client system 100 and the server 200 has been established, in Step 501 the client system 100 displays a screen to enable the consumer to enter the relevant parameters for the insurance policy. For example, the consumer can enter his name, date or birth, age, whether he is a smoker, his general health, the face value of the insurance policy, and the range of premium payments. According to an embodiment of the present invention, the information provided by the consumer is stored on either the server 200 or the client system 100. The information can be stored as a database record on the server 200. If saved on the client system 100, the information can be saved as a file or, in a presently preferred embodiment, the information can be stored as a "cookie" on the client system 100 after obtaining the consumer's permission to do so.

According to an embodiment of the present invention, the consumer can specify which of the parameters of the insurance policy are to be fixed in order to view the effect on another parameter. The consumer needs to change only those parameters that he wishes to vary. In one example, the consumer may choose to fix the cash value of the insurance policy and the time period over which that cash value will build up. For example, a 20 year old male consumer may be interested in a policy which has a face value of $450,000 and which will have a cash value of $100,000 after 20 years. This information is entered by the consumer using the client system 100 and is then transmitted by the client system 100 to the insurer's server 200 over the network 300. In accordance with an embodiment of the present invention, the CPU 202 of the server 200 calculates and displays in Steps 502 and 503 a formatted matrix of annual premiums according to a series of program instructions stored therein and transmits this information to the client system 100. The formatted matrix may be displayed to the consumer on the display 20 of the client system 100 in the manner shown in FIGURE 9 using any technique that is or may become well-known to those having ordinary skill in the art, including but not limited to Java Script or the Common Gateway Interface (CGI) . The exemplary formatted matrix in FIGURE 9 displays the range of annual premiums for cash values ranging from $70,000 to $130,000, which correspond to the columns of the formatted matrix, and for cash value accumulation periods ranging from 1 year to 30 years, which correspond to the rows of the formatted matrix. It will be appreciated by those having skill in the art that the cash value entered by the consumer can be incremented and decremented in any predetermined manner according to well-known techniques to provide the range of loan amounts for the formatted matrix of FIGURE 9. Similarly, the cash value accumulation period entered by the consumer can also be incremented and decremented in any predetermined manner according to well-known techniques to provide the range of periods for the formatted matrix of FIGURE 9.

According to an embodiment of the present invention, the consumer can perform real-time updates of the data values in the matrix of FIGURE 9 by changing the parameters of the insurance policy using scroll bars that are provided with the formatted matrix. A different scroll bar may be provided for each of the policy parameters. For example, as shown in FIGURE 9, a scroll bar is provided for each of the following policy parameters: the consumer's age, the face amount of the policy, the desired cash value, and the cash value accumulation period. The consumer can use the mouse 40 of the client system 100 to adjust the position of a particular scroll bar. In adjusting the position of the scroll bar, the associated policy parameter is incremented or decremented by a predetermined amount. The formatted matrix shown in FIGURE 9 is updated to include the incremented or decremented values of the policy parameters and the annual premiums that are calculated using the new policy parameters. The consumer can thus quickly and conveniently have generated by the server 200 for display on the display 20 of the client system 20 different matrices to compare different combinations of policy parameters to choose an insurance policy that best suits that customer's needs.

The consumer can obtain further information on the premium schedule of a particular insurance policy by double-clicking on a particular cell of a formatted matrix of interest. For example, in the formatted matrix shown in FIGURE 9, a 20 year old male consumer may be interested in a whole life insurance policy with a face value of $450,000 and a cash value of $100,000 after 20 years. The consumer can double-click on the corresponding annual premium of $1,655.79 in the formatted matrix. The consumer's selection is transmitted to the server 200 over the network 300, and the CPU 202 of the server 200 responds according to Steps 504 and 505 of FIGURE 8 by generating and transmitting to the client system 100 a premium schedule for the insurance policy. An exemplary premium schedule for the aforementioned insurance policy of FIGURE 9 is shown in FIGURE 10, and includes the year, the total premiums paid during the duration of the insurance policy, the cash value of the policy for each year, and the value of the insurance coverage.

According to an embodiment of the present invention, the customer can purchase the insurance policy online and in real-time. As shown in FIGURE 11, in Step 601 the server 200 generates an online application form which is transmitted to the client system 100 over the network 300 and displayed on the display 20. The consumer begins his purchase of the insurance policy by filling out the online application form. The online application form contains fields for those pieces of information that are typically required by an insurer. The information entered into the form by the consumer is transmitted from the client system 100 to the server 200 over the network 300. In Step 602 the server 200 receives the consumer's information from the client system. According to an embodiment of the present invention, the information provided by the consumer is stored on either the server 200 or the client system 100. The information can be stored as a database record on the server 200. If saved on the client system 100, the information can be saved as a file or, in a presently preferred embodiment, the information can be stored as a "cookie" on the client system 100 after obtaining the consumer's permission to^* do so.

The online application can be signed by the consumer using a "digital ID." According to Step 603, if the consumer possesses such a digital ID, the digital ID can be transmitted from the client system 100 to the server 200 over the network 300. If the consumer does not possess a digital ID, the information submitted by the consumer using the online application form can be used to create a digital ID for the consumer in Step 604.

After the consumer has submitted an online application form and a digital ID has been submitted or created, in Step 605 the CPU 202 of the server 200 executes appropriate program instructions to determine whether the consumer meets applicable underwriting standards based on the information entered by the consumer in the on-line form. For example, the consumer may not meet the underwriting standards because the consumer's responses on the online application form may indicate that a physical examination of the consumer may be required before the insurance policy will be issued. In that case, the consumer's application for a policy may be provisionally approved according to Step 606 subject to the results of the physical examination. Another reason the consumer may not meet the underwriting standards is because the consumer's responses on the online application form may indicate that a credit check of the consumer may be required before the policy can be issued. If such a check is required, the consumer's application may be provisionally approved according to Step 606 pending a determination that the consumer is creditworthy.

If the consumer meets the applicable underwriting standards, the consumer can pay the policy's premium using either a credit card or cybercash according to Step 607. If the consumer's credit card is accepted in Step 608, the transaction is complete. Else, the server 200 instructs the client system 100 to prompt the consumer for another credit card according to Step 609. If the consumer has another credit card, the consumer can pay the policy's premium using the alternate credit card according to Step 607. If the consumer does not have an alternate credit card or if the alternate credit card is not accepted, the server 200 makes available to the consumer's client system 100 in Step 610 a hyperlink to an affiliated credit card issuer so that the consumer can apply for a credit card online from the affiliated issuer. In a presently preferred embodiment, the server 200 provides the consumer's client system 100 with a hyperlink to the online credit card issuer esecure.com. If the consumer's credit cards are not accepted and the consumer does not qualify for a credit card from the affiliated issuer, the consumer's application for the insurance policy is rejected according to Step 611.

According to an embodiment of the present invention, after the consumer's payment has been accepted, the insurance policy is issued according to Step 612 and the server 200 generates and sends an e-mail message to the consumer's previous insurance carrier according to Step 613 to notify the previous insurance carrier that the consumer has purchased a replacement policy and that the consumer's insurance policy with the previous insurance carrier is being cancelled. This feature of this embodiment of the present invention is used to satisfy the Previous Policy Notification Rule that most states adhere to which requires that the consumer's current insurance carrier must be notified in writing when the consumer purchases a replacement policy.

The embodiment according to system and method of the present invention involving insurance transactions addresses significant problems relating to insurance transactions. One significant drawback associated with whole life insurance policies involves their associated high "acquisition cost." Historically, consumers have purchased these forms of life insurance through an insurance agent and an insurance agency. When the insurance agent sells a policy, the agent and the agency earns a predetermined commission that is computed as a percentage of the insurance premiums. The largest portion of a whole life policy's acquisition costs consists of the commissions paid to the insurance agent and to the agency. For example, the acquisition cost for a whole life insurance policy can typically average from approximately 110% to approximately 130% of the first year's premiums for the whole life policy. Although insurance companies have offered inexpensive rates on their term life policies, the companies have not yet offered whole life insurance policies at discounted rates. One consequence of the higher premiums is that the holder of a whole life policy may typically have to hold the policy for over twelve years before the cash value of the policy exceeds the total amount of the premiums paid.

The embodiment of the system and method of the present invention relating to insurance transactions provides a quick and convenient way for a consumer to purchase an insurance policy. Accordingly, insurance transactions according to the system and method of the present invention are characterized by reduced acquisition costs and a reduced cash value-to-premium breakeven times. Having described preferred embodiments of the invention with reference to the accompanying drawings, it is to be understood that the invention is not limited to those precise embodiments, and that various changes and modifications may be effected therein by one skilled in the art without departing from the scope or spirit of the invention as defined in the appended claims.

Claims

WHAT IS CLAIMED IS:

1. A method for implementing a financial transaction using a communications network, said method comprising the steps of: obtaining information relating to relevant parameters of said financial transaction over said communications network; generating a formatted matrix of data relating to said financial transaction; and transmitting said formatted matrix over said network for display.

2. The method of Claim 1, wherein said step of generating said formatted matrix comprises the step of generating a plurality of columns corresponding to a first one of said relevant parameters of said financial transaction, each of said columns corresponding to a particular value for said first one of said relevant parameters.

3. The method of Claim 2, wherein said step of generating said formatted matrix further comprises the step of generating a plurality of rows corresponding to a second one of said relevant parameters of said financial transaction, each of said rows corresponding to a particular value for said second one of said relevant parameters.

4. The method of Claim 3, wherein said step of generating said formatted matrix further comprises the step of populating said formatted matrix with data relating to a third parameter of said financial transaction.

5. A method for implementing a loan using a communications network, said method comprising the steps of: obtaining information relating to relevant parameters of said loan over said communications network; generating a formatted- atrix of data relating to said loan; and transmitting said formatted matrix over said communications network for display.

6. The method of Claim 5, wherein said step of generating said formatted matrix comprises the step of generating a plurality of columns corresponding to a first one of said relevant parameters of said loan, each of said columns corresponding to a particular value for said first one of said relevant parameters.

7. The method of Claim 6, wherein said step of generating said formatted matrix further comprises the step of generating a plurality of rows corresponding to a second one of said relevant parameters of said loan, each of said rows corresponding to a particular value for said second one of said relevant parameters.

8. The method of Claim 7, wherein said step of generating said formatted matrix further comprises the step of populating said formatted matrix with data relating to a third parameter of said loan.

9. The method of Claim 8, wherein: said first one of said relevant parameters comprises the amount of the loan; said second one of said relevant parameters comprises the term of the loan; and said third one of said relevant parameters comprises the monthly payments under said loan.

10. The method of Claim 8, wherein: said first one of said relevant parameters comprises the interest rate associated with the loan; said second one of said relevant parameters comprises the term of the loan; and said third one of said relevant parameters comprises the amount of said loan.

11. The method of Claim 8, wherein: said first one of said relevant parameters comprises the amount of the loan; said second one of said relevant parameters comprises the interest rate associated with the loan; and said third one of said relevant parameters comprises the monthly payments under the loan.

12. The method of Claim 12, further comprising the step of generating a payment schedule for said loan responsive to the selection of any of said data relating to said third parameter of said financial transaction.

13. The method of Claim 12, further comprising the step of transmitting said payment schedule for display.

14. A method for implementing an insurance policy using a communications network, said method comprising the steps of: obtaining information relating to relevant parameters of said insurance policy over said communications network; generating a formatted matrix of data relating to said insurance policy; and transmitting said formatted matrix over said communications network for display.

15. The method of Claim 14, wherein said step of generating said formatted matrix comprises the step of generating a plurality of columns corresponding to a first one of said relevant parameters of said insurance policy, each of said columns corresponding to a particular value for said first one of said relevant parameters.

16. The method of Claim 15, wherein said step of generating said formatted matrix further comprises the step of generating a plurality of rows corresponding to a second one of said relevant parameters of said insurance policy, each of said rows corresponding to a particular value for said second one of said relevant parameters.

17. The method of Claim 16, wherein said step of generating said formatted matrix further comprises the step of populating said formatted matrix with data relating to a third parameter of said insurance policy.

18. The method of Claim 17, wherein: said first one of said relevant parameters comprises the cash value of said insurance policy; said second one of said relevant parameters comprises the cash value accumulation period of said insurance policy; and said third one of said relevant parameters comprises the annual premiums under said insurance policy.

19. The method of Claim 17, further comprising the step of generating a premium schedule for said insurance policy.

20. The method of Claim 19, further comprising the step of transmitting said premium schedule for display.

21. A method for implementing an insurance policy to a consumer using a communications network, said method comprising the steps of: generating an on-line application form for said insurance policy; receiving information entered in said on-line application form by said consumer; and determining whether said consumer meets applicable underwriting standards based on said information.

22. The method of Claim 21, further comprising the step of sending an e-mail message to said consumer's current insurance carrier.

23. The method of claim 21, further comprising the step of generating a digital identification code using said information to identify said consumer.

24. A system for implementing a financial transaction, said system comprising: a computer system comprising: a processor; and a memory for storing program instructions executable by said processor to adapt said computer system to: obtain information relating to relevant parameters of said financial transaction; generate a formatted matrix of data relating to said financial transaction; and transmit said formatted matrix for display.

25. The system of Claim 24, wherein said system is adapted to generate a plurality of columns corresponding to a first one of said relevant parameters of said financial transaction for said formatted matrix, each of said columns corresponding to a particular value for said first one of said relevant parameters.

26. The system of Claim 25, wherein said system is further adapted to generate a plurality of rows corresponding to a second one of said relevant parameters of said financial transaction for said formatted matrix, each of said rows corresponding to a particular value for said second one of said relevant parameters.

27. The system of Claim 26, wherein said system is adapted to populate said formatted matrix with data relating to a third parameter of said financial transaction.

28. A system for implementing a loan, said system comprising: a computer system comprising: a processor; and a memory for storing program instructions executable by said processor to adapt said computer system to: obtain information relating to relevant parameters of said loan; generate a formatted matrix of data relating to said loan; and transmit said formatted matrix for display.

29. The system of Claim 28, wherein said system is adapted to generate a plurality of columns corresponding to a first one of said relevant parameters of said loan for said formatted matrix, each of said columns corresponding to a particular value for said first one of said relevant parameters.

30. The system of Claim 29, wherein said system is further adapted to generate a plurality of rows corresponding to a second one of said relevant parameters of said loan for said formatted matrix, each of said rows corresponding to a particular value for said second one of said relevant parameters.

31. The system of Claim 30, wherein said system may be adapted to populate said formatted matrix with data relating to a third parameter of said loan.

32. The system of Claim 31, wherein: said first one of said relevant parameters comprises the amount of the loan; said second one of said relevant parameters comprises the term of the loan; and said third one of said relevant parameters comprises the monthly payments under said loan.

33. The system of Claim 31 , wherein : said first one of said relevant parameters comprises the interest rate associated with the loan; said second one of said relevant parameters comprises the term of the loan; and said third one of said relevant parameters comprises the amount of said loan.

34. The system of Claim 31, wherein: said first one of said relevant parameters comprises the amount of the loan; said second one of said relevant parameters comprises the interest rate associated with the loan; and said third one of said relevant parameters comprises the monthly payments under the loan.

35. The system of Claim 31, wherein said system is further adapted to generate a payment schedule for said loan responsive to the selection of any of said data relating to said third parameter of said financial transaction. •

36. The system of Claim 35, wherein said system is further adapted to transmit said payment schedule for display.

37. A system for implementing an insurance policy, said system comprising: a computer system comprising: a processor; and a memory for storing program instructions executable by said processor to adapt said computer system to: obtain information relating to relevant parameters of said insurance policy; generate a formatted matrix of data relating to said insurance policy; and transmit said formatted matrix for display.

38. The system of Claim 37, wherein said system is adapted to generate a plurality of columns corresponding to a first one of said relevant parameters of said insurance policy for said formatted matrix, each of said columns corresponding to a particular value for said first one of said relevant parameters.

39. The system of Claim 38, wherein said system is further adapted to generate a plurality of rows corresponding to a second one of said relevant parameters of said insurance policy for said formatted matrix, each of said rows corresponding to a particular value for said second one of said relevant parameters.

40. The system of Claim 39, wherein said system is further adapted to populate said formatted matrix with data relating to a third parameter of said insurance policy.

41. The system of Claim 40, wherein: said first one of said relevant parameters comprises the cash value of said insurance policy; said second one of said relevant parameters comprises the cash value accumulation period of said insurance policy; and said third one of said relevant parameters comprises the annual premiums under said insurance policy.

42. The system of Claim 40, wherein said system is further adapted to generate a premium schedule for said insurance policy.

43. The system of Claim 42, wherein said system is further adapted to transmit said premium schedule for display.

44. A system for implementing an insurance policy, said system comprising: a computer system comprising: a processor; and a memory for storing program instructions executable by said processor to adapt said computer system to: generate an on-line application form for said insurance policy; receive information entered in said on-line application and relating to a purchaser of said insurance policy; and determine whether said purchaser meets applicable underwriting standards based on said information.

45. The system of Claim 21 , wherein said system is further adapted to send an e-mail message to said purchaser's current insurance carrier.

46. The system of Claim 44, wherein said system is further adapted to generate a digital identification code using said information to identify said purchaser.