System for maintaining an escrow account for reimbursing administrators of payments

Abstract

A loss ledger system to process third party fund requests on a daily basis, track historical requests, process validation on each request, maintain suspense / escrow and loss ledgers, and provide reconciliation assistance for accounting and claims processing departments. Additionally, the loss ledger system provides management reports, interfaces, security, audit and control and data conversion to facilitate minimizing escrowed resources, fraudulent activity and clerical errors.

Description

CROSS-REFERENCE TO RELATED APPLICATION[0001]This application claims priority to U.S. Provisional Patent Application No. 60 / 693,272, filed Jun. 22, 2005, which is incorporated herein by reference in its entirety.BACKGROUND OF THE INVENTION[0002]1. Field of Invention[0003]The subject technology relates to managing claims payment transactions involving a third party administrator and a method for gathering, processing, disseminating, reconciling and controlling information relating to these payment transactions as utilized by a company such as a property and casualty insurance company.[0004]2. Background of the Related Art[0005]Most insurance companies pay some of their claims by utilizing outside third party adjusting or administration firms (individually, a “TPA” and collectively, “TPAs”). Typically, the insurance companies must give large escrow or suspense deposits to the TPAs, which are used for paying losses. Historically, TPAs make payment requests in one month and then the loss...

AI Technical Summary

Benefits of technology

"The present invention provides an improved method for funding escrow accounts and managing the data associated with this process. The technology reduces the need for escrow accounts and ensures accurate payment of TPAs. It allows for real-time loss related data and assists with balancing the ledger of payments. The insurance company can handle large volumes of loss payment activity from multiple TPAs and quickly assess the accuracy of the funding requests. The technology also enables reconciliation between the TPAs and the insurance company and enter paid loss data into the insurance company's general ledger system. Overall, the technology streamlines the TPA funding process and reduces errors, misappropriation, and reconciliation issues."

Problems solved by technology

While a TPA may be able to convey information relating to which particular company is being charged for a loss payment, it is a difficult and time consuming process where multiple companies are involved.

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