Inventors: Fonda A. Hereford (St. Louis, MO); Stephen J. Hall (St. Louis, MO)
According to the inventors, prospective club members are typically concerned that if they must leave a club for an unforeseen reason, they will not have the ability to retrieve all or a portion of the initiation fee. This potential lack of prompt payback of the initiation fee is a deterrent to new people joining clubs. It is therefore desirable to enable a club member to obtain at least a portion of their initiation fee upon resigning from the club in a reasonable amount of time.
As a result, the inventors have devised a method for insuring initiation fees. The method includes receiving information pertaining to an entity and a member, receiving information pertaining to the initiation fee, and processing the received information to allow the insured entity to remit premiums and track coverage details. Claim 1 states as follows:
1. A method for providing insurance coverage by an insurer to insure a club's liability created by resignation of a club member, said method comprising the steps of: receiving, by the insurer, information pertaining to the club and a resigning club member; receiving, by the insurer, information pertaining to an initiation fee paid by the resigning club member to the club; receiving club member resignation information; processing, by the insurer, the received information to determine whether the insurer is to pay a club initiation fee insurance benefit to the club to cover a loss of at least a portion of the initiation fee paid by the resigning club member and whether insurance coverage details are to be tracked for the resigning club member; authorizing by the insurer the club initiation fee insurance benefit to be paid to the club; entering the resigning club member information in a benefits payable database.