U.S. patent application number 12/848510 was filed with the patent office on 2010-12-30 for financial instrument providing a guaranteed growth rate and a guarantee of lifetime payments.
This patent application is currently assigned to The Prudential Insurance Company of America. Invention is credited to Marc Joseph Buzzelli, Robert Alan Fishbein, Jacob M. Herschler, Fiona Alexandra Jackman-Ward, Daniel O. Kane, N. David Kuperstock, Robert Francis O'Donnell, Gary E. Phifer, III, Steven Lee Putterman, Polly Rae, Dain Eric Runestad, Robert J. Schwartz, Christopher Patrick Shecklev.
Application Number | 20100332365 12/848510 |
Document ID | / |
Family ID | 37997704 |
Filed Date | 2010-12-30 |
United States Patent
Application |
20100332365 |
Kind Code |
A1 |
O'Donnell; Robert Francis ;
et al. |
December 30, 2010 |
Financial Instrument Providing a Guaranteed Growth Rate and a
Guarantee of Lifetime Payments
Abstract
A method for providing a financial instrument includes
determining an initial account balance associated with a financial
instrument based upon an initial deposit amount, wherein the
financial instrument includes an account with an account balance
that changes over time. The method further includes establishing a
first guarantee of a protected value, the protected value including
at least an amount based upon the initial account balance growing
at a minimum growth rate for a defined period of time or until one
or more defined events occur, whichever is sooner; and establishing
a second guarantee that a beneficiary may periodically receive a
transfer of an amount of money for the life of a designated party,
wherein the amount comprises a percentage of the protected value at
the time of a particular event, provided that the amount may vary
based upon withdrawals from the account in excess of a first
particular limit.
Inventors: |
O'Donnell; Robert Francis;
(Harwinton, CT) ; Buzzelli; Marc Joseph;
(Flanders, NJ) ; Fishbein; Robert Alan; (Tenafly,
NJ) ; Herschler; Jacob M.; (Southport, CT) ;
Jackman-Ward; Fiona Alexandra; (Milford, CT) ; Kane;
Daniel O.; (Florham Park, NJ) ; Kuperstock; N.
David; (Woodbridge, CT) ; Phifer, III; Gary E.;
(Princeton, NJ) ; Putterman; Steven Lee; (West
Hartford, CT) ; Rae; Polly; (Trumbull, CT) ;
Runestad; Dain Eric; (Woodbridge, CT) ; Schwartz;
Robert J.; (West Granby, CT) ; Shecklev; Christopher
Patrick; (Branford, CT) |
Correspondence
Address: |
BAKER BOTTS L.L.P.
2001 ROSS AVENUE, SUITE 600
DALLAS
TX
75201-2980
US
|
Assignee: |
The Prudential Insurance Company of
America
Newark
NJ
|
Family ID: |
37997704 |
Appl. No.: |
12/848510 |
Filed: |
August 2, 2010 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
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11404979 |
Apr 14, 2006 |
7831496 |
|
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12848510 |
|
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60703630 |
Jul 29, 2005 |
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Current U.S.
Class: |
705/35 |
Current CPC
Class: |
G06Q 40/00 20130101;
G06Q 40/06 20130101 |
Class at
Publication: |
705/35 |
International
Class: |
G06Q 40/00 20060101
G06Q040/00 |
Claims
1-69. (canceled)
70. A data processing system configured to manage a financial
instrument, the financial instrument guaranteeing, for the life of
one or more designated parties, minimum annual withdrawals from a
financial account regardless of investment performance of one or
more investments selected for the financial account, the guarantee
subject to certain conditions defined in the financial instrument,
the data processing system comprising: one or more processors; and
one or more memory modules, wherein at least one of the one or more
memory modules comprises software configured, when executed by the
one or more processors, to: calculate a protected value, the
protected value being at least equal to an account balance of the
financial account increasing at a minimum positive growth rate
guaranteed under certain conditions by the financial instrument,
the account balance determined as of an effective date of the
guarantee of the minimum annual withdrawals; and calculate a
guaranteed minimum annual withdrawal amount from the financial
account as a function of the protected value; calculate a step-up
to the protected value based at least in part on an account balance
of the financial account as determined on a periodic basis;
calculate an increase to the protected value based at least in part
on the cumulative total of one or more payments; and calculate a
reduction to the protected value in response to a determination
that the cumulative total of one or more withdrawals from the
financial account for a certain time period exceeds the guaranteed
minimum annual withdrawal amount by an excess amount, the reduction
to the protected value calculated by the software based at least in
part on the excess amount, the certain time period defined in the
financial instruments.
71. A data processing system configured to manage a financial
instrument, the financial instrument guaranteeing, for the life of
one or more designated parties, minimum periodic withdrawals from a
financial account regardless of investment performance of one or
more investments selected for the financial account, the guarantee
subject to certain conditions defined in the financial instrument,
the data processing system comprising: one or more processors; and
one or more memory modules, wherein at least one of the one or more
memory modules comprises software configured, when executed by the
one or more processors, to: calculate a protected value, the
protected value being at least equal to an account balance of the
financial account increasing at a minimum positive growth rate
guaranteed under certain conditions by the financial instrument,
the account balance determined as of an effective date of the
guarantee of the minimum periodic withdrawals; and calculate a
guaranteed minimum periodic withdrawal amount from the financial
account as a function of the protected value.
72. The system of claim 71, wherein the period for the guaranteed
minimum periodic withdrawal amount is an annual.
73. The system of claim 71, wherein the software is further
configured, when executed by the one or more processors, to
calculate a step-up to the protected value based at least in part
on an account balance of the financial account as determined on a
periodic basis.
74. The system of claim 71, wherein the software is further
configured, when executed by the one or more processors, to
calculate an increase to the protected value based at least in part
on the cumulative total of one or more payments.
75. The system of claim 71, wherein the software is further
configured, when executed by the one or more processors, to
calculate a reduction to the protected value in response to a
determination that the cumulative total of one or more withdrawals
from the financial account for a certain time period exceeds the
guaranteed periodic withdrawal amount by an excess amount, the
reduction to the protected value calculated by the software based
at least in part on the excess amount, the certain time period
defined in the financial instrument.
76. The system of claim 75, wherein the reduction to the protected
value is substantially equal to the excess amount.
77. The system of claim 71, wherein the protected value is a
minimum guaranteed amount that is available for withdrawal but that
is not available as a separate benefit upon the death of the one or
more designated parties.
78. The system of claim 71, wherein the effective date of the
guarantee of the minimum periodic withdrawals corresponds to an
election of the guarantee of the minimum periodic withdrawals, the
election of the guarantee of the minimum periodic withdrawals
postdating an inception date of the financial instrument.
79. The system of claim 71, wherein the effective date of the
guarantee of the minimum periodic withdrawals corresponds to an
inception date of the financial instrument.
80. The system of claim 71, wherein the software is further
configured, when executed by the one or more processors, to
electronically transfer to another account at least a portion of
the maximum periodic withdrawal amount.
81. The system of claim 71, wherein the account balance is equal to
an initial amount deposited into the financial account.
82. The system of claim 71, wherein the minimum positive growth
rate is a fixed rate between four percent and six percent.
83. The system of claim 71, wherein the minimum positive growth
rate is a variable rate.
84. The system of claim 83, wherein the minimum positive growth
rate is based on a consumer price index.
85. The system of claim 71, wherein an initial account balance of
the financial account is based on an account balance from an
existing contract.
86. The system of claim 71, wherein the financial instrument
provides that the minimum positive growth rate is available at
least until there is a withdrawal from the financial account.
87. A method for managing a financial instrument, the financial
instrument guaranteeing, for the life of one or more designated
parties, minimum periodic withdrawals from a financial account
regardless of investment performance of one or more investments
selected for the financial account, the guarantee subject to
certain conditions defined in the financial instrument, the method
comprising: calculating, by one or more processors executing logic,
a protected value that is at least equal to an account balance of
the financial account increasing at a minimum positive growth rate
guaranteed under certain conditions by the financial instrument,
the account balance determined as of an effective date of the
guarantee of the minimum periodic withdrawals; and calculating, by
one or more processors executing logic, a guaranteed minimum
periodic withdrawal amount from the financial account as a function
of the protected value.
88. The method of claim 87, wherein the period for the guaranteed
minimum periodic withdrawal amount is an annual.
89. The method of claim 87, further comprising calculating, by one
or more processors executing logic, a step-up to the protected
value based at least in part on an account balance of the financial
account as determined on a periodic basis.
90. The method of claim 87, further comprising calculating, by one
or more processors executing logic, an increase to the protected
value based at least in part on the cumulative total of one or more
payments.
91. The method of claim 87, further comprising calculating, by one
or more processors executing logic, a reduction to the protected
value in response to a determination that the cumulative total of
one or more withdrawals from the financial account for a certain
time period exceeds the guaranteed periodic withdrawal amount by an
excess amount, the reduction to the protected value calculated by
the software based at least in part on the excess amount, the
certain time period defined in the financial instrument.
92. The method of claim 91, wherein the reduction to the protected
value is substantially equal to the excess amount.
93. The method of claim 87, wherein the protected value is a
minimum guaranteed amount that is available for withdrawal but that
is not available as a separate benefit upon the death of the one or
more designated parties.
94. The method of claim 87, wherein the effective date of the
guarantee of the minimum periodic withdrawals corresponds to an
election of the guarantee of the minimum periodic withdrawals, the
election of the guarantee of the minimum periodic withdrawals
postdating an inception date of the financial instrument.
95. The method of claim 87, wherein the effective date of the
guarantee of the minimum periodic withdrawals corresponds to an
inception date of the financial instrument.
96. The method of claim 87, further comprising electronically
transferring, by one or more processors executing logic, to another
account at least a portion of the maximum periodic withdrawal
amount.
97. The method of claim 87, wherein the account balance is equal to
an initial amount deposited into the financial account.
98. The method of claim 87, wherein the minimum positive growth
rate is a fixed rate between four percent and six percent.
99. The method of claim 87, wherein the minimum positive growth
rate is a variable rate.
100. The method of claim 99, wherein the minimum positive growth
rate is based on a consumer price index.
101. The method of claim 87, wherein an initial account balance of
the financial account is based on an account balance from an
existing contract.
102. The method of claim 87, wherein the financial instrument
provides that the minimum positive growth rate is available at
least until there is a withdrawal from the financial account.
Description
RELATED APPLICATION
[0001] This application is a continuation of U.S. patent
application Ser. No. 11/404,979 filed Apr. 14, 2006, which claims
priority to U.S. Provisional Application No. 60/703,630 filed Jul.
29, 2005.
TECHNICAL FIELD OF THE INVENTION
[0002] This invention relates generally to financial instruments
and more particularly to a financial instrument providing a
guaranteed growth rate and a guarantee of lifetime payments.
BACKGROUND OF THE INVENTION
[0003] There are numerous financial instruments available on the
market and people invest in them for a variety of reasons. Some
investors are interested in obtaining high rates of return on their
investments, while others are willing to forego high rates of
return in exchange for a reduced level of financial risk. Some
investors are interested in obtaining a steady income stream for a
period of years or possibly for life. When making decisions
regarding the selection of a financial instrument, there are
multiple tradeoffs. Typically, the lower the risk is, the lower the
expected rate of return will be. There are also numerous tax
consequences that may be considered in selecting a financial
instrument.
[0004] An annuity is one form of financial instrument. A typical
annuity is used to pay a certain sum of money at specified
intervals, with the payment amount being based on a given amount of
principal. There are many different types of annuities. For
example, annuities can be immediate or deferred, fixed or variable,
and single payment or multiple payment.
[0005] In a typical immediate annuity, a lump sum of money is
exchanged for a stream of payments to begin immediately. In a
typical deferred annuity, an investment is made with the
anticipation that it will grow and a stream of payments based upon
the value of the account at a future time will begin at some point
in the future. A fixed annuity is one in which the rate of return
is specified at the time the annuity is purchased. A variable
annuity typically allows the purchaser to select from a group of
potential investments and the rate of return depends upon the
performance of the selected investments.
[0006] In some cases, annuities provide additional benefits such as
death benefits, cash surrender benefits, or joint and survivor
income payment options.
SUMMARY OF THE INVENTION
[0007] According to one embodiment of the invention, a method for
providing a financial instrument includes determining an initial
account balance associated with a financial instrument based upon
an initial deposit amount, wherein the financial instrument
includes an account with an account balance that changes over time
and allows at least part of an account balance to be
discretionarily withdrawn. The method further includes establishing
a first guarantee of a protected value, the protected value
including at least an amount based upon the initial account balance
growing at a minimum positive growth rate for at least a defined
period of time or until one or more defined events occur, whichever
is sooner; and establishing a second guarantee that a beneficiary
may periodically receive a transfer of an amount of money for the
life of a designated party, wherein the amount comprises a
percentage of the protected value at the time of a particular
event, wherein the percentage of the protected value is fixed upon
an effective date of the second guarantee, and wherein the transfer
may be due to withdrawal from the account or due to benefit
payments made to the beneficiary, provided that the amount may vary
based upon withdrawals from the account in excess of a first
particular limit. The method further providing that at least one of
the above actions is performed using a computer.
[0008] Certain embodiments of the present invention may provide
various technical advantages. For example, the invention may allow
an account holder to maintain liquidity in an account while at the
same time receiving a guarantee of lifetime income and a guaranteed
growth rate. Certain embodiments may also allow an account holder
to receive the potentially higher rates of return associated with
variable annuities while at the same time avoiding the associated
risk of loss by obtaining a guaranteed growth rate.
[0009] Other technical advantages of the present invention will be
readily apparent to one skilled in the art from the following
figures, descriptions, and claims. Moreover, while specific
advantages have been enumerated above, various embodiments may
include all, some, or none of the enumerated advantages.
BRIEF DESCRIPTION OF THE DRAWINGS
[0010] For a more complete understanding of the present invention
and its advantages, reference is now made to the following
description, taken in conjunction with the accompanying drawings,
in which:
[0011] FIG. 1 illustrates a system for providing a financial
instrument according to a particular embodiment of the present
invention;
[0012] FIG. 2 illustrates a financial instrument according to a
particular embodiment;
[0013] FIGS. 3A and 3B provide a flowchart illustrating the
operation of a financial instrument according to a particular
embodiment;
[0014] FIGS. 4A-4B illustrate an example data processing system for
providing a financial instrument according to a particular
embodiment; and
[0015] FIG. 5 illustrates an embodiment of a general purpose
computer.
DETAILED DESCRIPTION OF THE EXAMPLE EMBODIMENTS
[0016] It should be understood at the outset that although example
implementations of embodiments of the invention are illustrated
below, the present invention may be implemented using any number of
techniques, whether currently known or not. The present invention
should in no way be limited to the example implementations,
drawings, and techniques illustrated below. Additionally, the
drawings are not necessarily drawn to scale.
[0017] FIG. 1 illustrates a system 10 for providing financial
instrument 100 according to a particular embodiment of the present
invention. System 10 may interact with customer 110 and issuer 120;
and system 10 may utilize account 130 and protected value 140.
Financial instrument 100 may represent a contract between customer
110 and issuer 120. Financial instrument 100 may include certain
provisions as described below in relation to FIG. 2.
[0018] According to certain embodiments, system 10 may be utilized
to provide financial instrument 100 to customer 110, such that
customer 110 may make a deposit and retain liquidity, while also
receiving the benefit of a guarantee of lifetime payments and the
security associated with a guaranteed growth rate.
[0019] Customer 110 may broadly refer to one or more of an account
holder 112, a beneficiary 114, a designated party 116, and/or one
who purchases financial instrument 100 for another person or
entity. In certain embodiments, account holder 112 may represent a
party who purchases financial instrument 100 and/or who is
attributed as being an owner of account 130. In certain
embodiments, account holder 112 may have one or more ownership
rights in account 130. For example, account holder 112 may have the
right to terminate financial instrument 100, to make investment
decisions for account 130, to identify one or more beneficiaries
114, and/or to identify one or more designated parties 116, to make
deposits into account 130. In a particular embodiment, account
holder 112 may be the entity or entities who have tax liability for
the transactions related to account 130. In certain embodiments,
beneficiary 114 may represent a party who may receive payments
and/or make withdrawals in accordance with the terms of financial
instrument 100. In certain embodiments, designated party 116 may
represent an individual, group of individuals, and/or other entity
that may be designated for purposes of determining death benefits,
lifetime payments, fees, guaranteed rates, and/or other features of
financial instrument 100. For example, guaranteed rates and/or fees
may be determined based upon the age, gender, and/or health of
designated party 116. As another example, death benefit provisions
may be based upon the death of designated party 116.
[0020] In certain embodiments, one or more of account holder 112,
beneficiary 114, and designated party 116 may be the same party. In
certain embodiments, financial instrument 100 may be purchased by
account holder 112 for the benefit of beneficiary 114, with
designated party 116 being the designated life for the guarantee of
lifetime payments.
[0021] In certain embodiments, one or more of account holder 112,
beneficiary 114, and designated party 116 may be related. For
example, designated party 116 and beneficiary 114 may be related as
husband and wife. As another example, account holder 112 may be an
employer and an employee may be both beneficiary 114 and designated
party 116. Alternatively, account holder 112 and beneficiary 114
may be the same individual or entity. In some embodiments, an
employer might purchase account 130 for account holder 112. Also,
financial instrument 100 may have multiple account holders 112,
beneficiaries 114, and/or designated parties 116. For example, a
husband and a wife may both be beneficiaries 114 and designated
parties 116. As another example, two or more business partners
could be designated parties 116. While this patent describes
various actions, benefits, steps, etc. in relation to a customer
110, account holder 112, beneficiary 114, and/or designated party
116, those descriptions should not be construed as limiting because
financial instrument 100 might provide for various persons to
exercise control, take various actions, receive certain benefits,
and/or affect certain features with regard to financial instrument
100.
[0022] Issuer 120 may represent an entity that provides and/or
sells financial instrument 100 to customer 110. Issuer 120 may
represent a bank, an insurance company, or other business entity
engaged in the sale of one or more financial instruments. Issuer
120 may also represent multiple entities that operate together to
provide or sell financial instrument 100.
[0023] Account 130 may represent a principal balance including
amounts deposited by customer 110 together with accrued growth due
to a return on one or more investments. The value of account 130
may be distributed among one or more investments 132. Investment
132 may provide a fixed or variable return, and the value of
account 130 may be distributed among any combination of investments
132. For example, investment 132 may represent a municipal bond, a
bond fund, a money market account, a corporate security, an index
fund, a mutual fund, a real estate investment trust, or any other
appropriate type of investment. In certain embodiments, account 130
may include one or more investments 132 associated with multiple
financial entities. In certain embodiments, the value of account
130 may be withdrawn in whole or in part at the discretion of
customer 110. In various embodiments, issuer 120 may restrict the
kinds of investments 132 available to customer 110 or allow
customer 110 to accept certain limitations in exchange for other
benefits. Account 130 may or may not be associated with issuer 120.
In some embodiments, a third party administering account 130 may
contract with issuer 120 to provide the guarantees. An insurance
company, for example, might provide the guarantees for mutual fund
accounts administered by a third party or for other types of
financial accounts.
[0024] Protected value 140 represents a value all or a portion of
which issuer 120 guarantees that beneficiary 114 will be able to
receive. Protected value 140 may be based upon the value of account
130 at some point in time. In some embodiments, although account
130 may decrease due to market fluctuations, protected value 140
does not, thus providing a guaranteed rate of return regardless of
market performance. In certain embodiments, protected value 140 may
be based upon an initial deposit and the initial deposit may
include an account balance from an existing contract. Thus, in some
embodiments, the guarantees described herein may be added to
existing financial instruments after the passage of time.
[0025] In certain embodiments, the amount and/or the guaranteed
percentage of protected value 140 may vary based on certain
characteristics of customer 110. For example, the guaranteed
percentage of protected value 140 (or the protected value 140
itself) may vary based upon the gender, age, or health status of
one or more of account holder 112, beneficiary 114, and designated
party 116. In certain embodiments, the amount and/or the guaranteed
percentage of protected value 140 may vary depending upon whether
and to what extent customer 110 accepts certain limitations on
flexibility and/or control over account 130 and/or distributions
therefrom. The amount available for withdrawal may also vary
similarly.
[0026] In certain embodiments, protected value 140 may be
calculated at the time that financial instrument 100 is purchased,
and in other embodiments protected value 140 may be calculated at
the end of a certain period of time or upon the happening of a
triggering event. In some embodiments, protected value 140 may be
based upon a combination of factors and calculated at different
times. Depending upon the embodiment, protected value 140 may
become fixed at some point in time. For example, protected value
140 may become fixed at the time of the first discretionary
withdrawal from account 130 by customer 110.
[0027] Numerous methods may be used to fix protected value 140 at
some point in time. For example, protected value 140 may be
calculated as equal to the value of account 130 at the time of the
first withdrawal by customer 110. Alternatively, protected value
140 may be calculated as the highest value of account 130 at one or
more specified times or at any time. For example, protected value
140 may be calculated as the highest value of account 130 on each
of the first ten anniversaries of the purchase date. In certain
embodiments, protected value may be calculated as the greater of
multiple calculation methods. For example, protected value may be
calculated as the value of account 130 on the date of first
withdrawal or the highest value of account 130 on the first ten
anniversary dates, but in no event less than the initial value of
account 130 growing at a five percent growth rate for the first ten
years. In certain embodiments, protected value 140 may be
calculated based upon the value of account 130 prior to the
inclusion of any bonuses. Alternatively, in certain embodiments,
protected value 140 may be calculated based upon the value of
account value 130 with additional bonuses (or other incentives)
added. For example, issuer 120 may pay a bonus to entice customers
to purchase the guarantees discussed herein. The invention may
include any method of determining protected value 140.
[0028] In certain embodiments, the amount and/or the guaranteed
percentage of protected value 140 may change after it has been
initially determined. As one example, the amount and/or guaranteed
percentage of protected value 140 may change based upon changes in
the law. As another example, the amount and/or guaranteed
percentage of protected value 140 may change based upon an
inflationary index, interest rate, or exchange rate. As yet another
example, the amount and/or guaranteed percentage of protected value
140 may change based upon changes in the health of customer
110.
[0029] In certain embodiments, customer 110 may be allowed to
step-up protected value 140 at specified times or at any time. For
example, following an election to step-up protected value 140,
protected value 140 may be set as equal to the current value of
account 130. In a particular embodiment, customer 110 may elect to
step-up protected value 140 at any time after the fifth anniversary
of the first withdrawal, with additional step-ups being available
five years after the date of the previous step-up election. A
step-up in protected value 140 may require further deposits to
account 130.
[0030] In certain embodiments, certain provisions of financial
instrument 100 may be managed through the use of annual income
amount 142 and/or annual withdrawal amount 144. For example, a
guarantee of lifetime payments may be managed by calculating annual
income amount 142 and evaluating discretionary withdrawals in
relation to annual income amount 142. For example if the cumulative
withdrawals for a certain year exceed annual income amount 142,
then annual income amount 142 may be reduced accordingly for future
years. Similarly, one or more guarantees may be managed by
calculating annual withdrawal amount 144 and evaluating
discretionary withdrawals in relation to annual withdrawal amount
144. Further explanation of the operation of a certain embodiment
with respect to protected value 140, annual income amount 142, and
annual withdrawal amount 144 is included below in relation to FIGS.
3A and 3B.
[0031] In the operation of certain embodiments, customer 110 may
purchase financial instrument 100 from issuer 120 (or an agent
thereof). In some cases, the purchase may occur electronically.
Issuer 120 may then create account 130 and associate one or more
deposits made by customer 110 with account 130. In certain
embodiments, customer 110 may make investment choices regarding the
allocation of funds associated with account 130. Protected value
140 may be calculated using one or more specified calculation
methods.
[0032] In some embodiments, following the purchase of financial
instrument 100, customer 110 may make additional deposits to and/or
discretionary withdrawals from account 130. Withdrawals from
account 130 may or may not be required or allowed based upon the
terms of financial instrument 100. The timing of withdrawals may or
may not be regulated by financial instrument 100. In certain
embodiments, withdrawals can be taken as separate partial
withdrawals or as systematic withdrawals. For example, withdrawals
may be automated and may be set up on a periodic basis, with the
period being yearly, quarterly, monthly, etc.
[0033] Although financial instrument 100 has been described as
being purchased directly from issuer 120 in certain embodiments,
financial instrument 100 may be purchased through one or more
intermediaries.
[0034] FIG. 2 illustrates a particular embodiment of financial
instrument 100. In the embodiment shown, financial instrument 100
includes annuity contract 102, lifetime payment guarantee 104,
growth rate guarantee 106, and death benefit 108. Annuity contract
102 may represent a contract for a broad range of annuity products.
For example, annuity contract 102 may represent a deferred variable
annuity such as ANNUITY ONE issued by PRUCO LIFE INSURANCE COMPANY.
In certain embodiments, annuity contract 102 may represent a
contract between customer 110 and issuer 120, wherein customer 110
may make deposits and/or withdrawals during an accrual phase and
then issuer 120 may make payments during a distribution phase. The
transition from the accrual phase to the distribution phase may
occur following an election by customer 110 to annuitize account
130.
[0035] In addition to the basic terms of annuity contract 102,
financial instrument 100 may include additional provisions
including lifetime payment guarantee 104, growth rate guarantee
106, and death benefit 108. Although annuity contract 102, lifetime
payment guarantee 104, growth rate guarantee 106, and death benefit
108 are shown as separate elements, one or more of these elements
may be combined, and each of these elements may also include
numerous components. In certain embodiments, different elements of
financial instrument 100 may be purchased or elected at different
times. For example, annuity contract 102 may be purchased in year
one, and lifetime payment guarantee 104 and growth rate guarantee
106 may be purchased or elected in year one or at anytime
thereafter. In some embodiments, account 130 remains liquid and may
be withdrawn (in some cases with penalty) by customer 110 prior to
annuitization of annuity contract 102. Annuitization may or may not
even occur upon the desires of customer 110.
[0036] In certain embodiments, lifetime payment guarantee 104 may
include provisions guaranteeing that beneficiary 114 may receive
financial transfers for life, beginning at or after a specified
triggering event. For example, in certain embodiments, these
financial transfers may be due to discretionary withdrawals and/or
payments. In certain embodiments, the amount of (and/or a limit
for) these financial transfers may be fixed or variable. For
example, the amount of (and/or a limit for) these financial
transfers may be determined based upon the age, gender, health
status, and/or other morbidity factors for one or more individuals.
As another example, the amount of (and/or a limit for) these
financial transfers may be independent of such factors. In certain
embodiments, the amount of (and/or the limit for) these financial
transfers may change after a period of time according to a set
schedule, changes in an external index, and/or any appropriate
factor.
[0037] In certain embodiments, the amount of (and/or a limit for)
these financial transfers may be determined based upon specified
percentages of protected value 140. For example, the amount of
(and/or a limit for) these financial transfers may be set at a
first percentage for a certain period and then change to second
percentage for another period. In certain embodiments, these
percentages may be fixed upon the effective date of lifetime
payment guarantee 104, upon the date of a first financial transfer,
or upon any other appropriate date.
[0038] In certain embodiments, lifetime payment guarantee 104 may
guarantee that beneficiary 114 will receive no less than annual
income amount 142 each year for the life of designated party 116,
beginning with an event. In certain embodiments, annual income
amount 142 may be five percent of protected value 140, but any
percentage of any measured amount could be used. In certain
embodiments, protected value 140 may be adjusted upwards or
downwards based on certain events. For example, protected value 140
may be increased by additional deposits and may be decreased by
cumulative withdrawals in a single year that exceed annual income
amount 142.
[0039] In certain embodiments, growth rate guarantee 106 may
include provisions allowing customer 110 to make withdrawals from
account 130 based upon deposits made by customer 110. The
provisions may further provide that the withdrawals may be made
from a value that is guaranteed to grow at a specified fixed or
variable rate for a specified period of time. For example, growth
rate guarantee 106 may allow beneficiary 114 to make withdrawals
from protected value 140, with protected value 140 guaranteed to be
no less than the value of customer deposits growing at a fixed five
percent per year for ten years from the date of the first deposit
or until the date of the first withdrawal, whichever is sooner.
[0040] In certain embodiments, the specified rate for growth rate
guarantee 106 may be any positive fixed value. In certain
embodiments, the specified rate for growth rate guarantee 106 may
be zero or a fixed negative value. In embodiments where the
specified rate is zero or a fixed negative value, the beneficial
aspects of growth rate guarantee 106 may include a reduction in
risk for customer 110. In certain embodiments, the specified rate
may be based on one or more variable indices. For example, the
specified rate may be based on the Consumer Price Index, a stock
market index, and/or the Federal Reserve's discount rate.
[0041] In certain embodiments, the specified rate may vary
depending on the timing of deposits, the size of deposits, and/or
the value of investments 132. For example, different rates may
apply to different deposits or the overall rate may be calculated
based on the rates in effect at the time that deposits are made,
weighted based on the relative size (or actual size) of the
deposits. In certain embodiments, the specified rate may vary based
on characteristics of account holder 112, beneficiary 114, and/or
designated party 116. For example, the specified rate may vary
depending on the gender, age, or health status of designated party
116.
[0042] In certain embodiments, the guaranteed growth may be set at
a first rate for a specified period of time, or until a specified
event occurs, and then change to a second rate. For example, the
guaranteed growth rate may be zero for the first two years and then
may change to a fixed five percent growth rate for the next eight
years. In certain embodiments, the growth rate may change numerous
times, with the changes occurring based upon specified periods of
time and/or upon the occurrence of specified events.
[0043] In embodiments of financial instrument 100 including death
benefit 108, death benefit 108 may include provisions allowing for
payments to be made to a recipient designated by account holder 112
and/or beneficiary 114, upon the death of designated party 116. For
example, payments made under death benefit 108 may be made to
beneficiary 114 upon the death of designated party 116, where
designated party 116 is account holder 112. As another example,
payments made under death benefit 108 may be made to an identified
third party beneficiary upon the death of designated party 116 or
beneficiary 114. Death benefit 108 may provide for payment of an
amount based upon the value of account 130, protected value 140, or
some other value identified in death benefit 108. For example,
death benefit 108 may provide for payment in the amount of the
value of account 130 at the time of death. As another example,
death benefit 108 may provide for payment in the amount of the
highest value of account 130 on any anniversary of the effective
date of financial instrument 100. In certain embodiments, death
benefit 108 may provide for payment in the amount of the highest of
multiple calculation methods. Although death benefit 108 has been
illustrated and described as a separate element of financial
instrument 100, death benefit 108 may be formed from multiple
components and/or may be included as part of another element of
financial instrument 100.
[0044] In embodiments of financial instrument 100 including annuity
contract 102, lifetime payment guarantee 104, and growth rate
guarantee 106, annuitization may occur due to an election to
annuitize or the terms of annuity contract 102 may require
annuitization on or before a certain date or triggering event. In
certain embodiments, upon annuitization, customer 110 may be
provided with multiple annuitization options. For example, customer
110 may be provided with periodic payments for life, with the
amount of the payments based in part upon the value of account 130
at the time of annuitization. As another example, customer 110 may
be provided with periodic payments for an established period, with
the amount of the payments based in part upon the value of account
130. Alternatively, customer 110 may be provided with periodic
payments for life in an amount equivalent to annual income amount
142 or customer 110 may be provided with periodic payments in an
amount equivalent to the annual withdrawal amount 144 for a period
of time extending until protected value 140 is exhausted. In
certain embodiments, upon annuitization, the benefits associated
with lifetime payment guarantee 104 and growth rate guarantee 106
may be terminated.
[0045] In certain embodiments, financial instrument 100 may provide
for an option allowing customer 110 to elect to receive the present
value of future guaranteed payments. For example, in embodiments
where the charge for lifetime payment guarantee 104 is an up-front
charge, financial instrument 100 may allow for customer 110 to
cancel lifetime payment guarantee 104 and receive a payment
calculated based upon the present value of the guarantee. In these
embodiments, the calculation may or may not include an underwriting
assessment of the life expectancy of beneficiary 114.
[0046] Although, in the embodiment shown, financial instrument 100
includes annuity contract 102, in other embodiments financial
instrument 100 may include any other appropriate forms of
investment contracts. For example, financial instrument 100 may
include a mutual fund contract, a 401(k) contract, and/or an
individual retirement account contract in addition to, or in lieu
of, annuity contract 102.
[0047] The costs associated with each element of financial
instrument 100 may be assessed together or as separate charges, and
the charges may be assessed in different ways. For example, the
costs may be assessed as up-front charges, as asset charges, or as
charges against withdrawals or payments. In certain embodiments,
the costs may be charged periodically and/or may vary over time.
For example, there may be no charge for a period of time and/or the
charge may increase or decrease over time depending on a variety of
factors. In certain embodiments, the costs may be charged in a
manner such that the charge is assessed pro-rata over multiple
investments or accounts 130, according to an election by customer
110, and/or such that the tax consequences of the charge are
substantially minimized. In a particular embodiment, the charge for
each element is assessed as a daily asset charge against the value
of account 130. For example, the charge assessed for lifetime
payment guarantee 104 and growth rate guarantee 106 may be a sixty
basis point charge (0.60 percent per year) assessed against the
daily balance of account 130. Similarly, the charge assessed for
death benefit 108 may be a 140 basis point charge (1.40 percent per
year) assessed against the daily balance of account 130.
[0048] As indicated above, in certain embodiments, financial
instrument 100 may provide for multiple beneficiaries 114 and
financial instrument 100 may provide for various persons to
exercise control. For example, financial instrument 100 may provide
that both a husband and a wife are beneficiaries 114 and designated
parties 116. Financial instrument 100 may further provide that the
husband may make discretionary withdrawals from account 130 and, if
the husband pre-deceases the wife, that the wife may make
discretionary withdrawals from account 130 after the husband's
death. Additionally, financial instrument 100 may further provide
that if account value 130 reaches zero during the husband's life,
then the husband may receive periodic payments for life and then,
upon his death, the wife may receive periodic payments for her
life. In certain embodiments, financial instrument 100 may include
similar provisions for business partners or other arrangements
involving multiple beneficiaries 114 and/or designated parties
116.
[0049] FIGS. 3A and 3B provide flowchart 200 which illustrates the
operation of financial instrument 100 according to a particular
embodiment. Flowchart 200 traces a few of the possible scenarios
that are available to customer 110 following the purchase of
financial instrument 100. Flowchart 200 is intended to demonstrate
an embodiment of financial instrument 100 in which certain features
of financial instrument 100 are paid for on a daily basis through
the use of a daily fee assessment, assessed on a daily basis
against the value of account 130. Accordingly, although in certain
embodiments more than one of the elected actions identified in
flowchart 200 may be taken on the same day, flowchart 200 assumes
that only one elected action will be taken for any given day.
[0050] According to flowchart 200, at step 201, customer 110 may
make one or more initial deposits and purchase financial instrument
100, including lifetime payment guarantee 104 and growth rate
guarantee 106. At step 202, account 130 is created. Customer 110
may designate investment allocations for account 130, one or more
beneficiaries 114, and/or one or more designated parties 116, at
step 203. If additional deposits are made by customer 110, at step
204, then the value of account 130 is increased by the amount of
the additional deposits, at step 212. In some cases, a fee may be
deducted from the additional deposits. If an elected withdrawal is
taken at step 206, then the value of account 130 is decreased by
the amount of the withdrawal and the cumulative yearly withdrawal
is calculated at step 208. If the withdrawal is the first
withdrawal taken in relation to financial instrument 100, at step
210, then protected value 140, annual income amount 142, and annual
withdrawal amount 144 are calculated at step 220. Similarly, if
additional deposits are made by customer 110 at step 204 and the
first withdrawal has already been taken at step 214, then protected
withdrawal 140, annual income amount 142, and annual withdrawal
amount 144 are calculated at step 220. In some embodiments, the
additional deposits may not change some or all of these values. If
the withdrawal is not the first withdrawal taken in relation to
financial instrument 100, at step 210, then protected value 140 is
decreased by the amount of the withdrawal at step 216. If the
cumulative yearly withdrawal exceeds annual income amount 142, at
step 218, then protected value 140 and annual income amount 142 are
recalculated at step 222. If the cumulative yearly withdrawal
exceeds annual withdrawal amount 144, at step 224, then protected
value 140 and annual withdrawal amount 144 are recalculated at step
226. These and other calculations are discussed in more detail
below.
[0051] If the value of account 130 is equal to zero, at step 230,
then there may be multiple possible alternative outcomes. If the
value of account 130 is equal to zero at step 230 and cumulative
yearly withdrawals are less than or equal to annual income amount
142 at step 231, then lifetime benefit payments may be made to
customer 110 in an amount equivalent to annual income amount 142,
at step 232. If the value of account 130 is equal to zero at step
230 and cumulative yearly withdrawals are greater than annual
income amount 142 but less than or equal to annual withdrawal
amount 144 at step 233, then beneficiary 114 may have withdrawals
in an amount equivalent to annual withdrawal amount 144 until
protected value 140 equals zero, at step 234. If the value of
account 130 is equal to zero at step 230 and cumulative yearly
withdrawals are greater than annual withdrawal amount 144, then
financial instrument 100 may be terminated in accordance with the
provisions of financial instrument 100, at step 236.
[0052] If financial instrument 100 includes annuity contract 102
and customer 110 elects to annuitize, at step 240, then account 130
is annuitized and annuity payments are made pursuant to the
provisions of annuity contract 102, at step 242. Account 130 may
cease to exist at this point and its balance may no longer be able
to be withdrawn by customer 110. If financial instrument 100
includes death benefit 108 and if customer 110 dies, at step 250,
then payments are made pursuant to the provisions of death benefit
108, at step 252. If customer 110 elects to terminate one or more
provisions of financial instrument 100, at step 260, then those
provisions are terminated in accordance with the terms of financial
instrument 100, at step 262.
[0053] If a step-up for protected value 140 is available at step
270 and if customer 110 elects a step-up for protected value 140 at
step 272, then protected value 140 is set as equal to the current
value of account 130 and annual income amount 142 and annual
withdrawal amount 144 are updated, at step 274. In some
embodiments, step 272 may be omitted and the step up may be
automatic. Account 130 may be updated to reflect daily changes in
investments 132 and daily fees may be assessed against account 130,
at step 280.
[0054] The calculations identified in flowchart 200 are dependent
upon the particular features of financial instrument 100. Included
below are example calculations for particular embodiments of
financial instrument 100. In the example calculations described
below, financial instrument 100 is treated as including annuity
contract 102, lifetime payment guarantee 104, and growth rate
guarantee 106. For the purpose of these calculations, annuity
contract 102 is treated as a deferred variable annuity, growth rate
guarantee 106 is treated as a guarantee of a five percent growth
rate for the first ten years, and lifetime payment guarantee 104 is
treated as a guarantee of five percent payments for life. Unless
otherwise indicated, it will be assumed that financial instrument
100 was purchased with an initial deposit and no additional
deposits have been made. Also, unless indicated otherwise, all
interest is assumed to be compounded daily.
[0055] Each time that a withdrawal is made, the value of account
130 may be reduced by the amount of the withdrawal. In one
embodiment, on the date of the first withdrawal, protected value
140 may be set at the greater of the current value of account 130
or the initial value of account 130 growing at five percent per
year compounded. Using these assumptions, on the date of the first
withdrawal, annual income amount 142 may set at five percent of
protected value 140 at the time that protected value 140 is
initially determined. Similarly, annual withdrawal amount 144 may
be set at seven percent of protected value 140 at the time that
protected value 140 is initially determined. In particular
embodiments, the percentages and/or methods of determining annual
withdrawal amount 144 or annual income amount 142 may vary.
[0056] For example, suppose an initial deposit of $100,000 is made
on Apr. 1, 2005. The first withdrawal takes place on Feb. 1, 2006
when the value of account 130 is equal to $102,500. Protected value
140 would initially be calculated as the greater of $102,500 or
$104,175.16.
$100,000.times.(1.05).sup.(306/365)=$104,175
Thus, protected value 140 would be $104,175. After the initial
protected value 140 is calculated, the withdrawal amount may be
subtracted from account 130 and protected value 140. Accordingly,
based on the assumptions above, annual income amount 142 would
initially be $5,208.75.
$104,175.times.0.05=$5,208.75
Similarly, annual withdrawal amount 144 would initially be
$7,292.25.
$104,175.times.0.07=$7,292.25
If the cumulative withdrawals in a given year exceed annual income
amount 142, protected value 140 and annual income amount 142 are
recalculated. Suppose that the current value of account 130 is
$55,000 and annual income amount 142 is $5,000. The first
withdrawal during the applicable year is $7,000, which is $2,000
greater than annual income amount 142. The first step in the
calculation would be to subtract annual income amount 142 from the
current value of account 130. Thus, the value of account 130 would
be reduced to $50,000. ($55,000-$5,000=$50,000) The next step is to
calculate the new annual income amount 142. Annual income amount
142 would decrease according to the percentage of the excess amount
to the value of account 130 prior to the excess being deducted.
Thus, annual income amount 142 would drop to $4,800 for subsequent
years.
(1-($2,000/$50,000)).times.$5,000=$4,800
The excess withdrawal amount would then be subtracted from the
value of account 130. Thus, after the withdrawal, the value of
account 130 would be $48,000. Protected value 140 would similarly
be reduced by the amount of the $7,000 withdrawal.
[0057] If the cumulative withdrawals in a given year exceed annual
withdrawal amount 144, protected value 140 and annual withdrawal
amount 144 are recalculated. Suppose that the current value of
account 130 is $58,000 and annual withdrawal amount 144 is $8,000.
The first withdrawal during the applicable year is $12,000, which
is $4,000 greater than annual withdrawal amount 144. The first step
in the calculation would be to subtract annual withdrawal amount
144 from the current value of account 130. Thus, the value of
account 130 would be reduced to $50,000. ($58,000-$8,000=$50,000)
The next step is to calculate the new annual withdrawal amount 144.
Annual withdrawal amount 144 would decrease according to the
percentage of the excess amount to the value of account 130 prior
to the excess being deducted. Thus, annual withdrawal amount 144
would drop to $7,360 for subsequent years.
(1-($4,000/$50,000)).times.$8,000=$7,360
The excess withdrawal amount would then be subtracted from the
value of account 130. Thus, after the withdrawal, the value of
account 130 would be $46,000. Protected value 140 would similarly
be reduced by the amount of the $12,000 withdrawal.
[0058] In certain embodiments, withdrawals that reduce the value of
account 130 below a specified minimum amount will not be allowed if
they are greater than the annual income amount. In certain
embodiments, provisions in financial instrument 100 may allow for
exceptions to accommodate certain provisions of the tax code. For
example, if financial instrument 100 is subject to required minimum
distributions under the tax code, then financial instrument 100 may
provide that required withdrawals will not reduce annual income
amount 142.
[0059] Each time that an additional deposit is made, the value of
account 130 may be increased by the amount of the deposit. If a
withdrawal has been made prior to the additional deposit, then
protected value 140 may also be increased by the amount of the
additional deposit, annual income amount 142 may be increased by
five percent of the additional deposit, and annual withdrawal
amount 144 may be increased by seven percent of the additional
deposit. For example, suppose protected value 140 is $50,000,
annual withdrawal amount 144 is $7,000, and annual income amount is
$5,000. If customer 110 makes an additional deposit of $42,400,
then protected value 140 would increase to $92,400.
($50,000+$42,400=$92,400). Annual withdrawal amount 144 would
increase to $9,968.
($42,400.times.0.07)+$7,000=$9,968
Annual income amount 142 would increase to $7,120.
($42,400.times.0.05)+$5,000=$7,120
Again, the percentages may vary and the ability to make deposits
may be controlled. Some contracts may have annual withdrawal amount
144 only or annual income amount 142 only.
[0060] If financial instrument 100 provides for step-ups to
protected value 140, during periods when step-ups are allowed
customer 110 may elect to step-up protected value 140 to equal the
value of account 130 (or some proportional amount). In some cases,
the step-up may be automatic. If such a step-up is elected, annual
income amount 142 may be set at the greater of its current value or
five percent of the new protected value 140. Similarly, if such a
step-up is elected, annual withdrawal amount 144 may be set at the
greater of its current value or seven percent of the new protected
value 140. For example, suppose the value of account 130 is
$80,000, protected value 140 is $60,000, annual withdrawal amount
144 is $7,000, and annual income amount 142 is $3,500. If a step-up
is elected, protected value 140 would be set at $80,000, and annual
income amount 142 would be set at $4,000.
($80,000.times.0.05=$4,000). Annual withdrawal amount 144 would
remain the same, because seven percent of protected value 140
($80,000.times.0.07=$5,600) is less than annual withdrawal amount
144 ($7,000).
[0061] FIGS. 4A-4B illustrate an example data processing system 300
for providing financial instrument 100 according to a particular
embodiment. While in certain embodiments financial instrument 100
is entered into without using a computer, other embodiments may
have a computerized option for entering into an agreement. Data
processing system 300 represents hardware and controlling logic for
providing financial instrument 100. In the embodiment shown, data
processing system 300 may include processing module 302, memory
304, and interface 306. As shown, data processing system 300 may be
included as a system controlled by issuer 120. However, in other
embodiments data processing system 300 may be external to issuer
120. Additionally, although data processing system 300 is shown as
a single system, data processing system 300 may be distributed
across multiple platforms housed in multiple locations, some or all
of which may or may not be controlled by issuer 120.
[0062] Processing module 302 may control the operation and
administration of elements within data processing system 300 by
processing information received from interface 306 and memory 304.
Processing module 302 may include any hardware and/or controlling
logic elements operable to control and process information. For
example, processing module 302 may be a computer, programmable
logic device, a microcontroller, and/or any other suitable device
or group of devices.
[0063] Memory 304 may store, either permanently or temporarily,
data and other information for processing by processing module 302
and communication using interface 306. Memory 304 may include any
one or a combination of volatile or nonvolatile local or remote
devices suitable for storing information. For example, memory 304
may include random access memory (RAM), read only memory (ROM),
magnetic storage devices, optical storage devices, or any other
suitable information storage device or combination of these
devices. Memory 304 may store, among other things, order data 320
and account data 330.
[0064] Interface 306 communicates information to and receives
information from devices or systems coupled to data processing
system 300. For example, interface 306 may communicate with other
elements controlled by issuer 120, network 340, and/or elements
coupled to network 340. Thus interface 306 may include any hardware
and/or controlling logic used to communicate information to and
from elements coupled to data processing system 300.
[0065] Network 340 represents communication equipment, including
hardware and any appropriate controlling logic, for interconnecting
elements coupled to network 340. Thus network 340 may represent a
local area network (LAN), a metropolitan area network (MAN), a wide
area network (WAN), and/or any other appropriate form of network.
Furthermore, elements within network 340 may utilize
circuit-switched, packet-based communication protocols and/or other
communication protocols to provide for network communications. The
elements within network 340 may be connected together via a
plurality of fiber-optic cables, coaxial cables, twisted-pair
lines, and/or other physical media for transferring communications
signals. The elements within network 340 may also be connected
together through wireless transmissions, including infrared
transmissions, 802.11 protocol transmissions, laser line-of-sight
transmissions, or any other wireless transmission method.
[0066] In operation, order data 320 may be transmitted from
purchaser 310 to data processing system 300 through network 340.
Data processing system may process order data 320, generate account
data 330, and transmit account data 330 to purchaser 310 through
network 340. Purchaser 310 may represent one or more customers 110
or purchaser 310 may represent one or more intermediaries acting on
behalf of customers 110.
[0067] Order data 320 may include the name of account holder 112,
one or more tax identifiers, the resident state of account holder
112, an initial investment allocation designation, and a
designation of beneficiary 114 and/or designated party 116. Account
data 330 may include an account number and a document, or reference
to a document, containing the provisions of financial instrument
100.
[0068] Upon receipt of order data 320, data processing system 300
may calculate any applicable fees associated with the provisions of
financial instrument 100. Data processing system may also identify
account 130 and identify assets and fees associated with account
130.
[0069] In certain embodiments, purchaser 310 may initiate the
transmission of order data 320 through the use of a web-based
application. For example, purchaser 310 may access one or more
websites and may submit certain portions of order data using those
websites. Similarly, purchaser 310 may utilize one or more
electronic fund transfer (EFT) technologies to purchase financial
instrument 100. The use of internet technologies to purchase
financial instrument 100 may involve the use of one or more
security provisions such as digital signatures, digital
certificates, passwords, and encryptions. In certain embodiments,
the collection of order data 320 may occur through the use of an
interactive process. For example, a web-based application may
present a series of questions to purchaser 310, which purchaser 310
may respond to and, in responding, submit the contents of order
data 320.
[0070] FIG. 5 is an embodiment of a general purpose computer 400
that may be used in connection with one or more pieces of software
used to implement the invention. General purpose computer 400 may
generally be adapted to execute any of the well-known OS2, UNIX,
Mac-OS, Linux, and Windows Operating Systems or other operating
systems. The general purpose computer 400 in this embodiment
comprises a processor 402, a random access memory (RAM) 404, a read
only memory (ROM) 406, a mouse 408, a keyboard 410 and input/output
devices such as a printer 414, disk drives 412, a display 416 and a
communications link 418. In other embodiments, the general purpose
computer 400 may include more, less, or other component parts.
Embodiments of the present invention may include programs that may
be stored in the RAM 404, the ROM 406 or the disk drives 412 and
may be executed by the processor 402. The communications link 418
may be connected to a computer network or a variety of other
communicative platforms including, but not limited to, a public or
private data network; a local area network (LAN); a metropolitan
area network (MAN); a wide area network (WAN); a wireline or
wireless network; a local, regional, or global communication
network; an optical network; a satellite network; an enterprise
intranet; other suitable communication links; or any combination of
the preceding. Disk drives 412 may include a variety of types of
storage media such as, for example, floppy disk drives, hard disk
drives, CD ROM drives, DVD ROM drives, magnetic tape drives or
other suitable storage media.
[0071] Although FIG. 5 provides one embodiment of a computer that
may be used with the invention, the invention may additionally
utilize computers other than general purpose computers as well as
general purpose computers without conventional operating systems.
Additionally, embodiments of the invention may also employ multiple
general purpose computers 400 or other computers networked together
in a computer network. Most commonly, multiple general purpose
computers 400 or other computers may be networked through the
Internet and/or in a client server network. Embodiments of the
invention may also be used with a combination of separate computer
networks each linked together by a private or a public network.
[0072] Several embodiments of the invention may include logic
contained within a medium. In the embodiment of FIG. 5, the logic
comprises computer software executable on the general purpose
computer 400. The medium may include the RAM 404, the ROM 406 or
the disk drives 412. In other embodiments, the logic may be
contained within hardware configuration or a combination of
software and hardware configurations. The logic may also be
embedded within any other suitable medium without departing from
the scope of the invention.
[0073] Although the present invention has been described in several
embodiments, a plenitude of changes and modifications may be
suggested to one skilled in the art, and it is intended that the
present invention encompass such changes and modifications as fall
within the present appended claims.
[0074] To aid the Patent Office, and any readers of any patent
issued on this application in interpreting the claims appended
hereto, applicants wish to note that they do not intend any of the
appended claims to invoke 6 of 35 U.S.C. .sctn.112 as this
paragraph and section exists on the date of filing hereof unless
"means for" or "step for" are used in the particular claim.
* * * * *