18521151. FAULT DETERMINATION OF BLOCKCHAIN SUBROGATION CLAIMS simplified abstract (STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY)

FAULT DETERMINATION OF BLOCKCHAIN SUBROGATION CLAIMS

Organization Name

STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY

Inventor(s)

Shawn M. Call of Bloomington IL (US)

Jaime Skaggs of Chenoa IL (US)

Eric Bellas of Bloomington IL (US)

Douglas A. Graff of Mountain View MO (US)

William J. Leise of Normal IL (US)

Vicki King of Bloomington IL (US)

Jacob J. Alt of Downs IL (US)

Eric R. Moore of Heyworth IL (US)

Stacie A. Mccullough of Bloomington IL (US)

FAULT DETERMINATION OF BLOCKCHAIN SUBROGATION CLAIMS - A simplified explanation of the abstract

This abstract first appeared for US patent application 18521151 titled 'FAULT DETERMINATION OF BLOCKCHAIN SUBROGATION CLAIMS

Simplified Explanation

The patent application describes a shared ledger system that manages and resolves subrogation claims between parties with arbitration. Evidence regarding the claim value is sent to the ledger, fault data can be broadcast and analyzed, and once resolved, funds can be released on the chain.

• Shared ledger system for managing subrogation claims
• Parties send evidence of claim value to the ledger
• Fault data can be broadcast and analyzed on the blockchain
• Funds can be released on the chain once the claim is resolved

Potential Applications

The technology can be applied in the insurance industry for efficient management of subrogation claims, reducing disputes and speeding up the resolution process.

Problems Solved

1. Streamlining the subrogation process 2. Enhancing transparency and trust between parties

Benefits

1. Faster resolution of subrogation claims 2. Reduced administrative costs 3. Improved accuracy in fault determination

Potential Commercial Applications

"Efficient Subrogation Claim Management in the Insurance Industry"

Possible Prior Art

There are existing systems for managing subrogation claims in the insurance industry, but the use of a shared ledger with consensus rules and arbitration is a novel approach.

How does the system ensure data privacy and security?

The patent application does not delve into the specifics of data protection measures within the shared ledger system. It would be crucial to understand how sensitive information is safeguarded from unauthorized access.

What are the potential challenges in implementing this technology on a large scale?

While the abstract outlines a promising solution for subrogation claim management, the practical challenges of integrating this system across various insurance companies and legal jurisdictions remain unclear. Addressing scalability and regulatory compliance issues could be significant hurdles in widespread adoption.

Original Abstract Submitted

A shared ledger operated by a group of network participants according to a set of consensus rules manages and resolves subrogation claims between a clamant and a defendant with arbitration. Evidence regarding the value of the subrogation claim is sent to the shared ledger by the parties to the subrogation claim such as sending data to a smart contract deployed on the shared ledger. The parties to the subrogation claim or entities that are not parties to the subrogation claim may broadcast data relating to fault to the blockchain. The data relating to fault may be evaluated by the parties or entities acting on the parties' behalf to determine fault. A fault determination may be broadcast to the blockchain based upon the analysis of the data relating to fault. Once the claim is resolved, arbitrator may release funds on the chain to the prevailing party or may accept confirmation that any payments have been made between the parties off-chain.