Patent Issued for System and method for real-time screening of a disability insurance applicant (USPTO 11379923): State Farm Mutual Automobile Insurance Company

2022 JUL 25 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- A patent by the inventors Benjamin, Robert (Normal, IL, US), Diffor, John David (Bloomington, IL, US), Etheridge, David Scott (Bloomington, IL, US), Garcia, Eloy (Bloomington, IL, US), Newman, Jeffrey A. (Bloomington, IL, US), Petersen, Randall (Normal, IL, US), Prall, Jeffrey M. (Normal, IL, US), Theile, David A. (Bloomington, IL, US), filed on July 9, 2020, was published online on July 5, 2022, according to news reporting originating from Alexandria, Virginia, by NewsRx correspondents.

Patent number 11379923 is assigned to State Farm Mutual Automobile Insurance Company (Bloomington, Illinois, United States).

The following quote was obtained by the news editors from the background information supplied by the inventors: “Many people desire to purchase disability insurance in order to ensure that their monthly financial obligations (especially with regard to, e.g., housing and vehicles payments) will be met if they become disabled and suffer a loss of income. According to one estimate, 26% of people own disability insurance, and 90% of them are between the ages of 25 and 64 years. Applicants for disability insurance may be employed in blue or white collar occupations, and may seek short-term or long-term coverage. However, existing processes for screening applicants for disability insurance and making coverage decisions may be cumbersome, especially for applicants with no or few risk factors for rejection but whose applications may be nevertheless subjected to full underwriting to assess their suitability. Further, existing processes may require insurance agents to classify the occupations of applicants, and mistakes may be made in such classifications that may delay coverage decisions and/or may result in incorrect acceptance or non-acceptance.”

In addition to the background information obtained for this patent, NewsRx journalists also obtained the inventors’ summary information for this patent: “Embodiments of the present technology relate to systems and computer-implemented methods for automatically screening applicants for disability insurance in real-time, and if the results are favorable, automatically communicating acceptances and issuing policies.

“In a first aspect, a computer-implemented method may be provided for real-time screening of an applicant for an insurance product. The computer-implemented method may include at least the following performed by an electronic processing element. A plurality of application answers may be received from the applicant via an electronic communications network. The application answers may include a height of the applicant, a weight of the applicant, an identifier for the applicant, and/or an occupation of the applicant. A body mass index number of the applicant may be calculated based upon the height of the applicant and the weight of the applicant, and the applicant may be rejected if their body mass index is below a minimum or above a maximum threshold. A prescription drug history of the applicant may be obtained based upon the identifier for the applicant, and the applicant may be rejected if the prescription drug history shows that the applicant uses one or more of specific drugs. The applicant may be accepted or rejected and a premium for the insurance product may be set based upon the real-time screening results, and the acceptance and the premium or the rejection may be communicated to the applicant via the electronic communications network. As a result, an instant answer and/or online binding disability product (i.e., a product that is bound online via virtual activity) may be provided to online customers, and/or the online customer experience may be enhanced. The method may include additional, less, or alternate actions, including those discussed elsewhere herein, and may be implemented via one or more local or remote processors and/or transceivers, and/or computer-executable instructions stored on non-transitory computer-readable medium or media.

“In a second aspect, a computer system may be provided for real-time screening of an applicant for an insurance product. The system may comprise an electronic communications element configured to communicate via an electronic communications network, and an electronic processing element configured to perform at least the following. A plurality of application answers may be received from the applicant via the electronic communications element. The application answers may include a height of the applicant, a weight of the applicant, an identifier for the applicant, and/or an occupation of the applicant. A body mass index number of the applicant may be calculated based upon the height of the applicant and the weight of the applicant, and the applicant may be rejected if their body mass index is below a minimum or above a maximum threshold. A prescription drug history of the applicant may be obtained based upon the identifier for the applicant, and the applicant may be rejected if the prescription drug history shows that the applicant uses one or more specific drugs. The applicant may be accepted or rejected and a premium for the insurance product may be set based upon the real-time screening results, and the acceptance and the premium or the rejection may be communicated to the applicant via the electronic communications element. As a result, an online applicant may be provided with a disability insurance product that is bound online, and the online customer experience may be enhanced. The computer system may be implemented one or more local or remote processors, transceivers, servers, and/or sensors, and may include additional, less, or alternate functionality, including that discussed elsewhere herein.

“In a third aspect, a non-transitory computer-readable medium with an executable program stored thereon may be provided for real-time screening of an applicant for an insurance product. The computer program may be configured to instruct an electronic processing element to perform at least the following actions. A plurality of application answers from the applicant may be received via an electronic communications network. The application answers may include a height of the applicant, a weight of the applicant, an identifier for the applicant, and/or an occupation of the applicant. A body mass index number of the applicant may be calculated based upon the height of the applicant and the weight of the applicant, and the applicant may be rejected if their body mass index is below a minimum or above a maximum threshold. A prescription drug history of the applicant may be obtained based upon the identifier for the applicant, and the applicant may be rejected if the prescription drug history shows that the applicant uses one or more specific drugs. The applicant may be accepted or rejected a premium for the insurance product may be set based upon the real-time screening results, and the acceptance and the premium or the rejection may be communicated to the applicant via the electronic communications network. As a result, instant answer disability insurance products may be provided with immediate online binding. The computer-executable instructions may direct one or more processors to perform additional, less, or alternate functionality or actions, including those discussed elsewhere herein.

“Various implementations of any or all of the foregoing aspects may include any one or more of the following additional features. The insurance product may be disability insurance. The plurality of specific drugs may include drugs used to treat serious medical conditions. The electronic processing element may confirm an occupation class assigned to the applicant based upon the occupation of the applicant, and may base the premium for the insurance product at least in part on the confirmed assigned occupation class. The electronic processing element may further obtain a motor vehicle report for the applicant based upon the identifier for the applicant, and may reject the applicant for the insurance product if the motor vehicle report shows that the applicant engages in one or more specific unsafe driving behaviors. The electronic processing element may further obtain an insurance information report for the applicant based upon the identifier for the applicant. This report may contain information on non-medical and medical conditions reported by other members who participate in the insurance information report, which may impact processing of the present products. In one embodiment, a short-term disability product may be provided. Tools use to assess the risk on the short-term disability insurance may include consumer reports or other consumer database information that helps to mitigate anti-selection.”

The claims supplied by the inventors are:

“1. A computer-implemented method for real-time processing of request for a product, the computer-implemented method comprising the following performed by an electronic processing element: receiving via an electronic communications network, data associated with the request including information about an individual associated with the request; automatically calculating a body mass index number of the individual based upon the information about the individual; automatically rejecting the request if the body mass index of the individual is below a minimum threshold or above a maximum threshold; obtaining, via the electronic communications network, a prescription drug history of the individual stored in a database of a third-party information provider; automatically rejecting the request if the prescription drug history of the individual shows that the individual uses one or more specific drugs; and automatically transmitting real-time results of the processing to a mobile device of the individual over the electronic communications network via a transceiver in communication with the electronic processing element, the real-time results including one of an acceptance or a rejection of the request.

“2. The computer-implemented method as set forth in claim 1, wherein the insurance product is disability insurance.

“3. The computer-implemented method as set forth in claim 1, wherein the one or more specific drugs includes drugs used to treat serious medical conditions.

“4. The computer-implemented method as set forth in claim 1, further including the electronic processing element confirming an occupation class assigned to the individual based upon an occupation of the individual, and basing a price for the product at least in part upon the confirmed assigned occupation class.

“5. The computer-implemented method as set forth in claim 1, further including the electronic processing element obtaining a motor vehicle report for the individual, and automatically rejecting the request if the motor vehicle report for the individual shows that the individual engages in one or more specific unsafe driving behaviors.

“6. The computer-implemented method as set forth in claim 1, further including the electronic processing element obtaining income and/or tax information for the individual, and considering the income and/or tax information when accepting or rejecting the request and/or setting a price for the product.

“7. The computer-implemented method as set forth in claim 1, if the request is rejected, further including allowing the individual at least in some cases to request the product using an alternate non-real-time process.

“8. A system for real-time processing of an request for a product, the system comprising: a transceiver coupled to an electronic communications network; and an electronic processing element coupled to the transceiver and configured to- receive via the transceiver, data associated with the request including information about an individual associated with the application, automatically calculate a body mass index number of the individual based upon the information about the individual, automatically reject the request if the body mass index of the individual is below a minimum threshold or above a maximum threshold, obtain, via the transceiver, a prescription drug history of the individual stored in a database of a third-party information provider, automatically reject the request if the prescription drug history of the individual shows that the individual uses one or more specific drugs, and automatically transmit real-time results of the processing to a mobile device of the individual over the electronic communications network via the transceiver, the real-time results including one of an acceptance or a rejection of the request.

“9. The system as set forth in claim 8, wherein the product is disability insurance.

“10. The system as set forth in claim 8, wherein the one or more specific drugs includes drugs used to treat serious medical conditions.

“11. The system as set forth in claim 8, the electronic processing element further configured to confirm an occupation class assigned to the individual based upon an occupation of the individual, and to base a price for the product at least in part upon the confirmed assigned occupation class.

“12. The system as set forth in claim 8, further including the electronic processing element obtaining income and/or tax information for the individual, and considering the income and/or tax information when accepting or rejecting the request and/or setting a price for the product.

“13. The system as set forth in claim 8, wherein if the request is rejected, the individual at least in some cases is allowed to request the product using an alternate non-real-time process.

“14. A non-transitory computer readable storage medium with a computer program stored thereon for real-time processing of a request for a product, wherein the computer program is configured to instruct an electronic processing element to perform actions comprising: receiving via an electronic communications network, data associated with the request including information about an individual associated with the request; automatically calculating a body mass index number of the individual based upon the information about the individual; automatically rejecting the request if the body mass index of the individual is below a minimum threshold or above a maximum threshold; obtaining, via the electronic communications network, a prescription drug history of the individual stored in a database of a third-party information provider; automatically rejecting the request if the prescription drug history of the individual shows that the individual uses one or more specific drugs; and automatically transmitting real-time results of the processing to a mobile device of the individual over the electronic communications network via a transceiver in communication with the electronic processing element, the real-time results including one of an acceptance or a rejection of the request.

“15. The non-transitory computer readable storage medium as set forth in claim 14, wherein the product is disability insurance.

“16. The non-transitory computer readable storage medium as set forth in claim 14, wherein the one or more specific drugs includes drugs used to treat serious medical conditions.

“17. The non-transitory computer readable storage medium as set forth in claim 14, further including the electronic processing element confirming an occupation class assigned to the individual based upon an occupation of the individual, and basing a price for the product at least in part upon the confirmed assigned occupation class.

“18. The non-transitory computer readable storage medium as set forth in claim 14, further including the electronic processing element obtaining income and/or tax information for the individual, and considering the income and/or tax information when accepting or rejecting the request and/or setting a price for the product.

“19. The non-transitory computer readable storage medium as set forth in claim 14, if the request is rejected, further including allowing the individual at least in some cases to request the product using an alternate non-real-time process.”

URL and more information on this patent, see: Benjamin, Robert. System and method for real-time screening of a disability insurance applicant. U.S. Patent Number 11379923, filed July 9, 2020, and published online on July 5, 2022. Patent URL: http://patft.uspto.gov/netacgi/nph-Parser?Sect1=PTO1&Sect2=HITOFF&d=PALL&p=1&u=%2Fnetahtml%2FPTO%2Fsrchnum.htm&r=1&f=G&l=50&s1=11379923.PN.&OS=PN/11379923RS=PN/11379923

(Our reports deliver fact-based news of research and discoveries from around the world.)