System and method for insuring frequent traveler reward miles
Air miles insurance allows customers to protect the value of their reward miles when a covered airline ceases operation and those reward miles are not honored by another carrier, or if a covered airline continues to operate, but discontinues its reward program and the miles are not honored by another carrier. This air miles insurance can be associated with a particular transaction account company. The number of miles lost by an enrolled customer may be deposited into a mileage bank for the customer, which is then credited to the customer's transaction account when an airline ticket is purchased. The number of miles may alternatively be exchanged for points in the transaction account company's rewards program. The number of points awarded may be equal to the number of airline miles that the customer lost. The customer may then redeem the rewards points according to the rules of the rewards program.
1 . A method of redeeming insured frequent traveler miles, comprising:
converting insured frequent traveler miles to rewards points when an event covered by a miles insurance policy occurs;
depositing the rewards points in a rewards program account associated with a customer transaction account; and
allowing redemption of at least a portion of the rewards points as payment for all or part of any type of goods or services purchase, without requiring payment of a premium after the occurrence of the covered event.
2 . The method of claim 1 , wherein the event includes at least one of cessation of service by an airline associated with the frequent traveler miles or discontinuance of a frequent traveler program associated with the frequent traveler miles.
3 . The method of claim 1 , wherein the insured frequent traveler miles are associated with more than one frequent traveler program.
4 . The method of claim 1 , wherein the insured frequent traveler miles are associated with more than one person.
5 . The method of claim 1 , further comprising insuring the frequent traveler miles of the customer according to the miles insurance policy.
6 . The method of claim 1 , further comprising:
converting additional insured frequent traveler miles to additional rewards points when another event covered by the miles insurance policy occurs; and
depositing the additional rewards points in the rewards program account.
7 . A method of redeeming insured frequent traveler miles, comprising:
insuring frequent traveler miles according to a miles insurance policy;
depositing the frequent traveler miles into a customer mileage bank associated with a transaction account of the customer when an event covered by the miles insurance policy occurs;
verifying a travel-related record of charge in the transaction account of the customer upon receipt of a claim by the customer;
debiting the customer mileage bank by the number of miles to be used by the record of charge; and
crediting the transaction account of the customer with an amount of monetary funds corresponding to the number of miles used according to an exchange rate determined by the miles insurance policy.
8 . The method of claim 7 , wherein the event includes at least one of cessation of service by an airline associated with the frequent traveler miles or discontinuance of a frequent traveler program associated with the frequent traveler miles.
9 . The method of claim 7 , wherein the crediting step comprises crediting the transaction account of the customer without requiring payment of a premium after the occurrence of the covered event.
10 . The method of claim 7 , wherein the frequent traveler miles in the mileage bank are deposited from more than one frequent traveler program.
11 . The method of claim 7 , wherein the frequent traveler miles in the mileage bank are associated with more than one person.
12 . The method of claim 7 , further comprising:
depositing additional frequent traveler miles into the mileage bank when another event covered by the miles insurance policy occurs.
13 . A system for redeeming insured frequent traveler miles, comprising:
a processor; and
a memory in communication with the processor for storing a plurality of processing instructions for directing the processor to:
convert insured frequent traveler miles to rewards points when an event covered by a miles insurance policy occurs;
deposit the rewards points in a rewards program account associated with a customer transaction account; and
allow redemption of at least a portion of the rewards points as payment for all or part of any type of goods or services purchase, without requiring payment of a premium after the occurrence of the covered event.
14 . The system of claim 13 , wherein the event includes at least one of cessation of service by an airline associated with the frequent traveler miles or discontinuance of a frequent traveler program associated with the frequent traveler miles.
15 . The system of claim 13 , wherein the insured frequent traveler miles are associated with more than one frequent traveler program.
16 . The system of claim 13 , wherein the insured frequent traveler miles are associated with more than one person.
17 . The system of claim 13 , wherein the plurality of processing instructions are further configured to direct the processor to:
convert additional insured frequent traveler miles to additional rewards points when another event covered by the miles insurance policy occurs; and
deposit the additional rewards points in the rewards program account.
18 . A system for redeeming insured frequent traveler miles, comprising:
a processor; and
a memory in communication with the processor, the memory for storing a plurality of processing instructions for directing the processor to:
insure frequent traveler miles according to a miles insurance policy;
deposit the frequent traveler miles into a customer mileage bank associated with a transaction account of the customer when an event covered by the miles insurance policy occurs;
verify a travel-related record of charge in the transaction account of the customer upon receipt of a claim by the customer;
debit the customer mileage bank by the number of miles to be used by the record of charge; and
credit the transaction account of the customer with an amount of monetary funds corresponding to the number of miles used according to an exchange rate determined by the miles insurance policy.
19 . The system of claim 18 , wherein the event includes at least one of cessation of service by an airline associated with the frequent traveler miles or discontinuance of a frequent traveler program associated with the frequent traveler miles.
20 . The system of claim 18 , wherein the instructions for directing the processor to credit the transaction account of the customer comprise instructions for directing the processor to credit the transaction account of the customer without requiring payment of a premium after the occurrence of the covered event.
21 . The system of claim 18 , wherein the frequent traveler miles in the mileage bank are deposited from more than one frequent traveler program.
22 . The system of claim 18 , wherein the frequent traveler miles in the mileage bank are associated with more than one person.
23 . The system of claim 18 , wherein the plurality of processing instructions further include processing instructions for directing the processor to deposit additional frequent traveler miles into the mileage bank when another even covered by the miles insurance policy occurs.