LIQUID INSURANCE CONTRACTS
A liquid insurance contract (LIC) comprises a security which is traded or tradable and which has cash flows to the issuer based upon a liability whose exact value is unknown at the time of issuance. A method for creating and trading these LICs, as well as other financial products derived from LICs, may include any of the following steps: writing at least one LIC; preparing regulatory filings for at least two LICs; issuing the two LICs; preparing regulatory filings for a financial product which includes at least one detachable LIC provision; issuing the financial product; creating at least one underwriter as a closed end fund owned by a parent company; placing ownership of at least a portion of an issue of the financial product in an underwriter owned by a parent company; spinning off the underwriter from the parent company using at least one stock dividend; trading shares of the underwriter; reporting information on trades and positions of the underwriter; and valuing the underwriter using analytic modeling, sensitivity testing, portfolio analysis, and/or investment analysis.
1 - 15 . (canceled)
16 . An insurance underwriting system, comprising:
an underwriter trading a liquid insurance contract on an exchange;
a first information system connecting to the underwriter;
a record of contractual commitments of the underwriter;
a record of assets of the underwriter;
a second information system connecting to a liquid insurance contract database; and
a third information system connecting to a fourth party.
17 . The system of claim 16 , wherein the fourth party comprises a surety guarantor.
18 . The system of claim 16 , wherein the first information system comprises a human interface device.
19 . The system of claim 16 , wherein the liquid insurance contract database includes a record of a related financial product.
20 . The system of claim 16 , wherein the liquid insurance contract database includes a record of a non-insurance contract.
21 . The system of claim 16 , wherein the record of contract commitments are maintained in a first database.
22 . The system of claim 21 , wherein the third information system connecting to the fourth party moves information to the first database.
23 . The system of claim 21 , wherein the system connecting to a fourth party computes using information from the first database.
24 . The system of claim 16 , wherein the fourth party comprises an exchange listing the underwriter's shares.
25 . The system of claim 16 , wherein the underwriter comprises a publicly traded company.
26 . The system of claim 16 , wherein the fourth party comprises an investor in the underwriter.
27 . An insurance underwriting system, comprising:
a first exchange providing for trading of a liquid insurance contract;
an underwriter trading the liquid insurance contract; and
an information conduit providing data on the trading of the liquid insurance contract.
28 . The system of claim 27 , wherein the underwriter comprises a limited liability entity.
29 . The system of claim 27 , further comprising:
a second exchange providing for trading of shares of the underwriter.
30 . The system of claim 29 , wherein the shares of the underwriter impose no liability on an owner for obligations of the underwriter pursuant to the liquid insurance contract.
31 . The system of claim 29 , wherein the second exchange comprises an online exchange.
32 . The system of claim 29 , wherein:
the first exchange provides for trading of the liquid insurance contract by a plurality of underwriters only; and
the second exchange provides for trading of the shares of the plurality of underwriters.
33 . The system of claim 29 , further comprising a third exchange providing for trading of assets held by the underwriter.
34 . The system of claim 29 , further comprising:
an information system that connects the underwriter to the second exchange.
35 . The system of claim 29 , further comprising:
a human interface device connected to a computer network used to communicate information regarding trading on the second exchange to an owner of shares of the underwriter.
36 . The system of claim 27 , further comprising:
a surety guaranteeing obligations of the liquid insurance contract.
37 . The system of claim 36 , wherein the surety provides a performance bond.
38 . The system of claim 36 , wherein the surety provides a financial guarantee.
39 . The system of claim 27 , further comprising:
a surety guaranteeing obligations of the underwriter.
40 . The system of claim 27 , wherein the liquid insurance contract includes no portion of a surety guarantee.
41 . The system of claim 27 , wherein the liquid insurance contract specifies obligations of an originating party in the U.S.
42 . The system of claim 27 , wherein the first exchange comprises an online exchange.
43 . An insurance underwriting system, comprising:
a first exchange providing for trading of a liquid insurance contract by a plurality of underwriters only; and
a second exchange providing for trading of shares of the plurality of underwriters.
44 . The system of claim 43 , wherein each underwriter comprises a limited liability entity.
45 . The system of claim 43 , wherein the second exchange imposes no liability for obligations of the underwriters pursuant to the liquid insurance contract.
46 . The system of claim 43 , further comprising:
a surety guaranteeing obligations of the liquid insurance contract.
47 . The system of claim 43 , further comprising:
a surety guaranteeing obligations of at least one of the plurality of underwriters.
48 . The system of claim 43 , wherein the second exchange comprises a government regulated stock exchange.
49 . The system of claim 43 , wherein the liquid insurance contract specifies obligations of an originating party in the U.S.
50 . The system of claim 43 , wherein the first exchange comprises a first online exchange.
51 . The system of claim 43 , wherein the second exchange comprises a second online exchange.
52 . The system of claim 43 , further comprising:
a third exchange providing for trading of assets held by at least one of the plurality of underwriters.
53 . The system of claim 43 , further comprising:
information conduits used by the plurality of underwriters to communicate information regarding trading on the first exchange.
54 . The system of claim 43 , further comprising:
an information system that connects at least one of the underwriters to the second exchange.
55 . The system of claim 43 , further comprising:
a human interface device connected to computer network used to communicate information regarding trading on the first exchange.