System and method for implementing and administering lender-owne

Data processing: financial – business practice – management – or co – Automated electrical financial or business practice or... – Insurance

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705 35, 705 38, G06F 1760

Patent

active

059078286

ABSTRACT:
The invention relates to a system for analyzing and managing at least one lender owned life insurance policy on behalf of a lender to improve loan profitability, achieve investment results from the COLI, and to prevent investment loss as a result of adverse tax law changes. The system tracks mortgage balances, applies vesting schedules, determines appropriate face amounts, policy loan amounts and/or cash withdrawals to maximize return on investment for the lender. The system also reacts to adverse changes in the tax laws by adjusting the form of the insurance policy to a term policy with an increased face value and terminating the policy. Termination of the policy involves additional cash withdrawals which are used to pay back policy loans. The system further illustrates past and future performance of the policy based upon assumptions of tax law changes. Finally, the system monitors and administers the MCPP program on an ongoing basis.

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26 U.S.C. 264 (Internal Revenue Code; Certain Amounts Paid in Connection with Insurance Contracts).
26 U.S.C. 7702 (Internal Revenue Code; Life Insurance Contract Defined).

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