Andrew M Walter

US Patent:

20090204442, Aug 13, 2009

Filed:

Jan 30, 2007

Appl. No.:

12/162909

Inventors:

Leslie W. Logsdon - Naples FL, US
Ian Sidney Cotton - Wichita Falls TX, US
Andrew J. Walter - Arnold MD, US
R. Laken Mitchell - Naples FL, US

International Classification:

G06Q 40/00

US Classification:

705 4

Abstract:

The present invention proposes to integrate mortality table analysis and the future premium burden thereby creating a unit net asset value (“Unit NAV”) for investors holding a unit in the fund. A major component of Unit NAV in a viatical and life settlement transaction is the amount of expected premium burden yet to be paid during the anticipated lifetime of the insured. The future premium burden is in essence the “measure of risk” associated with the policy. As time passes, the predictability of paying future premiums is related to the cumulative mortality curve to a point in time. By determining the remaining cumulative mortality curve, the probability of having to pay the future premiums can be determined, and, incorporating these two elements into the valuation model, the anticipated “incremental value” at any point in time can be calculated. A determination can be made as to whether to use internal or external premium financing. Another point of novelty is that the proposed method simultaneously satisfies two different requirements of valuation adopted by the Financial Accounting Standards Board.