Drawing of the Insurance Process tom bakos consulting, inc. ©2004

tom bakos consulting, inc. ©2004 Exemplary Companies With P/C Patents Filed or Issued NOTE: 70% of applications are to independent inventors !

5,797,134 6,064, / /571, / / Focus on These P/C Patents Relevant to Automobile Insurance

Progressive Casualty Ins. Co. Motor vehicle monitoring system for determining cost of insurance 5,797,134 - Issued August 18, 1998 tom bakos consulting, inc. ©2004 FIELD: Determining Cost of Insurance for a Vehicle PROBLEMS: Current pricing systems are based on self-reported, non-verifiable data Current rating systems look backward, therefore Not predictive of future driving behavior SOLUTION: Current motor vehicle control and operating systems are readily adaptable to obtain information relevant to determination of cost of insurance.

Progressive Casualty Ins. Co. Motor vehicle monitoring system for determining cost of insurance 5,797,134 - Issued August 18, 1998 tom bakos consulting, inc. © Determine cost of automobile insurance for a selected period: start with an initial insured profile and a base cost of insurance; monitor operating state of vehicle or action of the operator during the selected period; record data elements having a pre-selected relationship to safety standards; identify a surcharge or discount to be applied to the base cost; and, produce a final cost of automobile insurance for the selected period from the base cost and the surcharge or discount. There are 26 Claims (5 independent claims) - This is Claim #1 (paraphrased)

tom bakos consulting, inc. ©2004 Progressive Casualty Ins. Co. Motor vehicle monitoring system for determining cost of insurance 5,797,134 - Issued August 18, 1998

tom bakos consulting, inc. ©2004 Progressive Casualty Ins. Co. Motor vehicle monitoring system for determining cost of insurance 5,797,134 - Issued August 18, 1998

Progressive Casualty Ins. Co. Motor vehicle monitoring system for determining cost of insurance 5,797,134 - Issued August 18, 1998 tom bakos consulting, inc. ©2004 Driver: Total driving time in minutes by each driver of the insured vehicle; number of minutes driving in high/low risk locations (high/low accident areas); number of minutes of driving at high/low risk times (rush hour or Sunday afternoon); safe driving behavior, using seat belts, use of turn signals, observance of speed limits, and observance of traffic control devices; number of sudden braking situations; and number of sudden acceleration situations. Vehicle: Location vehicle is parked at night (in garage, in driveway, on street);and location vehicle is parked at work (high theft locations, etc.). Summary of Items to be monitored

Progressive Casualty Ins. Co. Motor vehicle monitoring system for determining cost of insurance 6,064,970 - Issued May 16, 2000 tom bakos consulting, inc. ©2004 Patent # 6,064,970 is a CONTINUATION of #5,797,134 and is essentially identical except for the claims. It has 15 total claims (6 Independent) The added claims involve the generation of a database.

tom bakos consulting, inc. 5,000 person test market in England + + US Europe Progressive Casualty Ins. Co. Motor vehicle monitoring system for determining cost of insurance Houston, TX 1998 Minnesota

tom bakos consulting, inc. ©2004

Progressive Casualty Ins. Co. Monitoring system for determining and communicating a cost of insurance 2004/ Filed: January 23, 2004 tom bakos consulting, inc. ©2004 FIELD: Determining Cost of Insurance for a Vehicle or other machine such as, without limitation: factory machines, farm machines, motorcycles, motor homes, trucks, tractors, vans, buses, boats and other water craft and aircraft PROBLEMS: Same as earlier patents SOLUTION: Same as earlier patents

Progressive Casualty Ins. Co. Monitoring system for determining and communicating a cost of insurance 2004/ Filed: January 23, 2004 tom bakos consulting, inc. © Determine the cost of motor vehicle insurance, the system comprising: a device for obtaining and recording operational characteristics and operator actions; a means for the insured to review how the recorded information would affect the cost of insurance; a means for the insured to selectively control whether to submit the recorded information to an insurer; a means for the insured to submit the recorded information to the insurer, if the party elects to do so; a means for assigning a risk level based in part on the recorded information; and a means for determining a cost of insurance for the motor vehicle based on the assigned risk level. There are 85 Claims (8 independent claims) - This is Claim #1 (paraphrased)

Related - Progressive Casualty Ins. Co. Method and apparatus for Internet on-line insurance policy service 2002/ Filed: July 30, 1999 tom bakos consulting, inc. ©2004 FIELD: Insurance policy service and delivery PROBLEMS: Communications to service or put an insurance policy into effect which require personal intervention of company representative: are inefficient, and costly SOLUTION: Use the Internet

tom bakos consulting, inc. © An Internet on-line insurance policy service system for real-time automated selective adjustment by a user of policy parameters and system computation and communication of consequent costs, comprising: an information module for identifying a user to the system and for verifying to the user present policy parameters of a policy held by the user; and, a policy adjustment module for selectively communicating a parameter change and for generating in real-time a cost adjustment attributable to the parameter change There are 36 Claims (4 independent claims) - This is Claim #1 (verbatim) Related - Progressive Casualty Ins. Co. Method and apparatus for Internet on-line insurance policy service 2002/ Filed: July 30, 1999

tom bakos consulting, inc. ©2004 Related - Progressive Casualty Ins. Co. Method and apparatus for Internet on-line insurance policy service 2002/ Filed: July 30, 1999

tom bakos consulting, inc. ©2004

IBM Secure method and system for determining charges and assuring privacy 2003/ Filed: November 21, 2001 tom bakos consulting, inc. ©2004 FIELD: Data collection and security systems (705/52) PROBLEMS: Present day methods for collecting data in connection with earlier patents: do not assure security or privacy apply to automobiles but not other apparatus SOLUTION: Use local data processing system installed on remote apparatus

1. A system for processing usage data within a local data processing system installed on a remote apparatus, wherein the local data processing system comprises: a sensor for gathering usage data from the remote apparatus; and a processor for processing the gathered usage data and calculating a charge based on the gathered usage data. IBM Secure method and system for determining charges and assuring privacy 2003/ Filed: November 21, 2001 tom bakos consulting, inc. ©2004 There are 38 Claims (5 independent claims) - This is Claim #1 (verbatim)

IBM Secure method and system for determining charges and assuring privacy 2003/ Filed: November 21, 2001 tom bakos consulting, inc. ©2004

Other Related Patent Applications 2001/ Filed: December 21, 2000 Method and system for processing automobile insurance of a prepaid type according to driving distance and time of vehicle Buy prepaid insurance card Amounts deducted based on driving time, distance, and velocity Progressive patents provide fixed period of coverage at varying rate. This patent charges fixed premium for varying period of time.