Patent Issued for Systems and methods for developing policy administration systems based upon finite state machine models (USPTO 11257165): State Farm Mutual Automobile Insurance Company

2022 MAR 14 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- A patent by the inventors Kongara, Venkata R. (Fairview, TX, US), Norton, Joseph W. (Normal, IL, US), Wheeler, Timothy J. (Normal, IL, US), filed on December 4, 2019, was published online on February 22, 2022, according to news reporting originating from Alexandria, Virginia, by NewsRx correspondents.

Patent number 11257165 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: “In the insurance field, a policy administration system is used to manage policies that an insurance company has written. A policy may be issued for any number of products or lines of business provided by the insurance company (e.g., vehicle insurance, home insurance, life insurance, etc.). Transactions made on the policy (e.g., changes to the policy such as renewal, cancellation, reinstatement, etc.) may be recorded and tracked by the policy administration system. In this regard, the policy administration system may act like a system of record for storing, organizing and maintaining various policy-related data generated by the insurance company.

“Existing policy administration systems may be typically implemented as several monolithic systems, each of which is responsible for a product or line of business. While these separate monolithic systems may have access to some globally available data, the systems themselves are essentially isolated from one another. This makes the sharing of data and information between the systems difficult. As a result, during transactions, separate processing operations may be needed in order to determine the impact of the transactions on all the separate systems. This in turn may render the performance of many existing policy administration systems slow and/or inefficient.”

In addition to the background information obtained for this patent, NewsRx journalists also obtained the inventors’ summary information for this patent: “To improve system performance, policy administration systems may be designed and developed based upon finite state machine models. In this approach, instead of having separate monolithic systems, each and every insured household is modeled as a finite state machine. As a result, each household becomes a type of self-contained policy administration system that may be run and managed at the same time, thereby enabling the concurrent processing of insurance-related transactions in a fast, efficient and accurate manner.

“In one aspect, a computer-implemented method for developing a policy administration system based upon finite state machine models may be provided. The method may include defining, by one or more processors executing a processor-implemented instruction module, the policy administration system to comprise a plurality of households insured by an insurance company. The plurality of households may include at least a portion of all households insured by the insurance company. The method may also include modeling, by the processor-implemented instruction module, each of the plurality of households as a finite state machine, wherein each of the plurality of households is defined by a (i) set of states, (ii) a set of events, and/or (iii) a set of transition functions. The method may further include defining, by the processor-implemented instruction module, data that describe or relate to one or more insurance policies issued by the insurance company for each household, the data corresponding to the set of states for each household. Further, the method may include receiving, by the processor-implemented instruction module, one or more transactions for each household that operate on the data of each household, the one or more transactions corresponding to the set of events for each household. Still further, the method may include processing, by the processor-implemented instruction module, the one or more transactions for each household according to one or more transaction logics and/or one or more product rules for each household, the one or more transaction logics and product rules corresponding to the set of transition functions for each household. Additionally, the method may include causing, by the processor-implemented instruction module, a state transition for each household as a result of processing the one or more transactions for each household. Insurance policies may be adjusted and/or insurance-related activities may be performed based upon the state transition for each household and/or current modeling of an individual insured household/family. The method may include additional, fewer, or alternate actions, including those discussed elsewhere herein.

“In another aspect, a non-transitory computer-readable storage medium including computer-readable instruction to be executed on one or more processors of a system for developing a policy administration system based upon finite state machine models may be provided. The instructions when executed may cause the one or more processors to define, by a processor-implemented instruction module, the policy administration system to comprise a plurality of households insured by an insurance company. The plurality of households may include at least a portion of all households insured by the insurance company. The instructions when executed may also cause the one or more processors to model, by the processor-implemented instruction module, each of the plurality of households as a finite state machine, wherein each of the plurality of households is defined by a (i) set of states, (ii) a set of events, and/or (iii) a set of transition functions. The instructions when executed may further cause the one or more processors to define, by the processor-implemented instruction module, data that describe or relate to one or more insurance policies issued by the insurance company for each household, the data corresponding to the set of states for each household. Further, the instructions when executed may cause the one or more processors to receive, by the processor-implemented instruction module, one or more transactions for each household that operate on the data of each household, the one or more transactions corresponding to the set of events for each household. Still further, the instructions when executed may cause the one or more processors to process, by the processor-implemented instruction module, the one or more transactions for each household according to one or more transaction logics and/or one or more product rules for each household, the one or more transaction logics and product rules corresponding to the set of transition functions for each household. Additionally, the instructions when executed may cause the one or more processors to cause, by the processor-implemented instruction module, a state transition for each household as a result of processing the one or more transactions for each household. The instructions may also relate to managing, generating, and/or updating insurance policies for insured households based upon a current state of each household. The non-transitory computer-readable storage memory may include additional, fewer, or alternate computer-readable instructions, including those discussed elsewhere herein.

“In another aspect, a computer system for developing a policy administration system based upon finite state machine models may be provided. The system may include a data repository and a server including a memory having instructions for execution on one or more processors. The instructions, when executed by the one or more processors, may cause the server to define, by one or more processors executing one or more processor-implemented instruction modules, the policy administration system to comprise a plurality of households insured by an insurance company. The plurality of households may include at least a portion of all households insured by the insurance company. The instructions, when executed by the one or more processors, may also cause the server to model, by the one or more processors executing one or more processor-implemented instruction modules, each of the plurality of households as a finite state machine, wherein each of the plurality of households is defined by a (i) set of states, (ii) a set of events, and/or (iii) a set of transition functions. The instructions, when executed by the one or more processors, may further cause the server to store, by the one or more processors executing one or more processor-implemented instruction modules, each household in the data repository. Further, the instructions, when executed by the one or more processors, may cause the server to define, by the one or more processors executing one or more processor-implemented instruction modules, data that describe or relate to one or more insurance policies issued by the insurance company for each household, the data corresponding to the set of states for each household. Still further, the instructions, when executed by the one or more processors, may cause the server to receive, via a network connection, one or more transactions for each household that operate on the data of each household, the one or more transactions corresponding to the set of events for each household. Moreover, the instructions, when executed by the one or more processors, may cause the server to process, by the one or more processors executing one or more processor-implemented instruction modules, the one or more transactions for each household according to one or more transaction logics and one or more product rules for each household, the one or more transaction logics and product rules corresponding to the set of transition functions for each household. Additionally, the instructions, when executed by the one or more processors, may cause the server to cause, by the one or more processors executing one or more processor-implemented instruction modules, a state transition for each household as a result of processing the one or more transactions for each household to facilitate managing and/or updating insurance policies. The computer system may include additional, fewer, or alternate instructions for execution on the one or more processors, including those discussed elsewhere herein.

“Advantages will become more apparent to those skilled in the art from the following description of the preferred embodiments which have been shown and described by way of illustration. As will be realized, the present embodiments may be capable of other and different embodiments, and their details are capable of modification in various respects. Accordingly, the drawings and description are to be regarded as illustrative in nature and not as restrictive.”

The claims supplied by the inventors are:

“1. A computer-implemented method for developing a policy administration system based upon finite state machine models, the method comprising: defining, by one or more processors, the policy administration system to comprise a plurality of households insured by an insurance company, wherein the plurality of households includes at least a portion of all households insured by the insurance company; modeling, by the one or more processors, each of the plurality of households as a finite state machine, wherein each of the plurality of households is defined by (i) a set of states, (ii) a set of events, and (iii) a set of transition functions; defining, by the one or more processors, data that describe or relate to one or more insurance policies issued by the insurance company for each household, the data corresponding to the set of states for each household; receiving, by the one or more processors, one or more transactions for each household that operate on the data of each household, the one or more transactions corresponding to the set of events for each household; processing, by the one or more processors, the one or more transactions for each household according to one or more transaction logics and one or more product rules for each household, the one or more transaction logics and product rules corresponding to the set of transition functions for each household; and causing, by the one or more processors, a state transition for each household as a result of processing the one or more transactions for each household to facilitate managing, updating, and/or generating insurance policies.

“2. The computer-implemented method of claim 1, wherein causing the state transition includes causing each household to undertake a change from a first state to a second state, the first state indicating the state of the data of each household before the processing of the one or more transactions and the second state indicating the state of the data of each household after the processing of the one or more transactions.

“3. The computer-implemented method of claim 1, wherein the one or more insurance policies are issued for products or lines of business provided by the insurance company including one or more of a vehicle insurance, home insurance, health insurance, long-term care insurance, pet insurance, or life insurance.

“4. The computer-implemented method of claim 1, wherein the one or more transactions specify one or more operations that create, lookup, modify, terminate, cancel, renew, reinstate or service a policy.

“5. The computer-implemented method of claim 1, wherein the one or more transaction logics specify actions that need to be executed in order to process a transaction, and the one or more product rules specify guidelines that determine whether a transaction obeys a set of regulations as defined or required for a product or line of business.

“6. The computer-implemented method of claim 1, wherein each of the plurality of households supports dynamic functions including one or more of a split function, merge function, upgrade or downgrade function, backup function, restore function or heath check function.

“7. The computer-implemented method of claim 1, wherein each of the plurality of households implements a user interface that allows a user to access the one or more insurance policies associated with each household as well as the products or lines of business provided by the insurance company.

“8. The computer-implemented method of claim 1, wherein the data, the one or more transaction logics and the one or more product rules of each household are stored locally in each household.

“9. A non-transitory computer-readable storage medium including computer-readable instruction to be executed on one or more processors of a system for developing a policy administration system based upon finite state machine models, the instructions when executed causing the one or more processors to: define, by one or more processors, the policy administration system to comprise a plurality of households insured by an insurance company, wherein the plurality of households includes at least a portion of all households insured by the insurance company; model, by the one or more processors, each of the plurality of households as a finite state machine, wherein each of the plurality of households is defined by (i) a set of states, (ii) a set of events, and (iii) a set of transition functions; define, by the one or more processors, data that describe or relate to one or more insurance policies issued by the insurance company for each household, the data corresponding to the set of states for each household; receive, by the one or more processors, one or more transactions for each household that operate on the data of each household, the one or more transactions corresponding to the set of events for each household; process, by the one or more processors, the one or more transactions for each household according to one or more transaction logics and one or more product rules for each household, the one or more transaction logics and product rules corresponding to the set of transition functions for each household; and cause, by the one or more processors, a state transition for each household as a result of processing the one or more transactions for each household to facilitate managing, updating, and/or generating insurance policies.

“10. The non-transitory computer-readable storage medium of claim 9, wherein the instructions to cause the state transition include causing each household to undertake a change from a first state to a second state, the first state indicating the state of the data of each household before the processing of the one or more transactions and the second state indicating the state of the data of each household after the processing of the one or more transactions.

“11. The non-transitory computer-readable storage medium of claim 9, wherein the one or more transactions specify one or more operations that create, lookup, modify, terminate, cancel, renew, reinstate or service a policy.

“12. The non-transitory computer-readable storage medium of claim 9, wherein the one or more transaction logics specify actions that need to be executed in order to process a transaction, and the one or more product rules specify guidelines that determine whether a transaction obeys a set of regulations as defined or required for a product or line of business.

“13. The non-transitory computer-readable storage medium of claim 9, wherein each of the plurality of households supports dynamic functions including one or more of a split function, merge function, upgrade or downgrade function, backup function, restore function or heath check function.

“14. A computer system for developing a policy administration system based upon finite state machine models, the system comprising: a data repository; and a server, including a memory having instructions for execution on one or more processors, wherein the instructions, when executed by the one or more processors, cause the server to: define, by one or more processors, the policy administration system to comprise a plurality of households insured by an insurance company, wherein the plurality of households includes at least a portion of all households insured by the insurance company; model, by the one or more processors, each of the plurality of households as a finite state machine, wherein each of the plurality of households is defined by (i) a set of states, (ii) a set of events, and (iii) a set of transition functions; store, by the one or more processors, each household in the data repository; define, by the one or more processors, data that describe or relate to one or more insurance policies issued by the insurance company for each household, the data corresponding to the set of states for each household; receive, via a network connection, one or more transactions for each household that operate on the data of each household, the one or more transactions corresponding to the set of events for each household; process, by the one or more processors, the one or more transactions for each household according to one or more transaction logics and one or more product rules for each household, the one or more transaction logics and product rules corresponding to the set of transition functions for each household; and cause, by the one or more processors, a state transition for each household as a result of processing the one or more transactions for each household to facilitate managing, updating, and/or generating insurance policies.

“15. The computer system of claim 14, wherein the instructions of the server, when executed by the one or more processors to cause the state transition include instructions to cause each household to undertake a change from a first state to a second state, the first state indicating the state of the data of each household before the processing of the one or more transactions and the second state indicating the state of the data of each household after the processing of the one or more transactions.

“16. The computer system of claim 14, wherein the one or more transactions specify one or more operations that create, lookup, modify, terminate, cancel, renew, reinstate or service a policy.

“17. The computer system of claim 14, wherein the one or more transaction logics specify actions that need to be executed in order to process a transaction, and the one or more product rules specify guidelines that determine whether a transaction obeys a set of regulations as defined or required for a product or line of business.

“18. The computer system of claim 14, wherein each of the plurality of households is configured to support dynamic functions including one or more of a split function, merge function, upgrade or downgrade function, backup function, restore function or heath check function.”

There are additional claims. Please visit full patent to read further.

URL and more information on this patent, see: Kongara, Venkata R. Systems and methods for developing policy administration systems based upon finite state machine models. U.S. Patent Number 11257165, filed December 4, 2019, and published online on February 22, 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=11257165.PN.&OS=PN/11257165RS=PN/11257165

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