Computer system for controlling a system of managing fluctuating cash flows

Abstract

Apparatus (method implemented with a machine, the machine, and the method for making the machine, and products produced thereby) for controlling a system of managing cash flows for a transaction, the apparatus including: data processing means arranged for receiving information into memory, said information including respective descriptions of risks, statistical assumptions for said risks, and financial assumptions for said risks, the data processing means further including: calculating means, responsive to said descriptions and said assumptions, for calculating expected cash flows corresponding to said risks for time periods; accounting means for determining, responsive to actual cash flow information from occurrence of events corresponding to said risks, for a first party to the transaction owing the expected cash flows to a second party to the transaction, and for determining, for the second party owing the actual cash flows to the first party, a net settlement, for each of said time periods, between the parties in the transaction, to manage the actual cash flows and the expected cash flows.

1 . (canceled) 
     
     
         2 . Apparatus configured to compute and output financial derivative SWAP transaction scenario data, the apparatus comprising:
 a digital electrical computer system, comprising a computer programmed to compute financial derivative SWAP transaction scenario data, the system accessing information in memory, said information comprising expected cash flows for insurance policy death proceeds for time periods and projected actual cash flows information from calculating occurrence of events corresponding to said insurance policy death proceeds using mortality occurrence assumptions which vary from mortality occurrence assumptions used in calculating the expected cash flows, and producing, from said information, at least one scenario of the projected actual cash flows versus the expected cash flows, each said scenario indicative of a transaction in which a first party owes the expected cash flows to a second party, and the second party owes the actual cash flows to the first party, according to terms of a financial derivative SWAP transaction, wherein there is a settlement, for each of said time periods between the parties to the financial derivative SWAP transaction, calculated by subtractively combining the insurance policy death proceeds actual cash flows and the insurance policy death proceeds expected cash flows, and   outputting, at an output device, each said scenario of the insurance policy death proceeds actual cash flows versus the insurance policy death proceeds expected cash flows for the time periods.   
     
     
         3 . The apparatus of  claim 2 , wherein the digital electrical computer system comprises a screen data processing system which is used to carry out the producing and the outputting. 
     
     
         4 . The apparatus of  claim 2 , wherein the digital electrical computer system comprises a pathway used in processing model documents which carry out a transaction associated with at least one said scenario. 
     
     
         5 . The apparatus of  claim 3 , wherein the digital electrical computer system comprises a pathway used in processing model documents which carry out a transaction associated with at least one said scenario. 
     
     
         6 . A method of using a machine programmed to electronically process input information to produce therefrom output financial derivative SWAP transaction scenario data, the method comprising:
 accessing, by a digital computer in a computer system, information in memory, said information comprising expected cash flows for insurance policy death proceeds for time periods and projected actual cash flows information from calculating occurrence of events corresponding to said insurance policy death proceeds using mortality occurrence assumptions which vary from mortality occurrence assumptions used in calculating the expected cash flows, and   producing, by said computer system from said information, at least one scenario of the projected actual cash flows versus the expected cash flows, each said scenario indicative of a transaction in which a first party owes the expected cash flows to a second party, and the second party owes the actual cash flows to the first party, according to terms of a financial derivative SWAP transaction, wherein there is a settlement for each of said time periods, between the parties to the financial derivative SWAP transaction, calculated by subtractively combining the insurance policy death proceeds actual cash flows and the insurance policy death proceeds expected cash flows, and   outputting, by said computer system at an output device, each said scenario of the insurance policy death proceeds actual cash flows versus the insurance policy death proceeds expected cash flows for the time periods.   
     
     
         7 . The method of  claim 6 , wherein the producing and the outputting are carried out by using a screen data processing system. 
     
     
         8 . The method of  claim 6 , further including processing, via a pathway of the digital electrical computer system, processing model documents which are used to carry out a transaction associated with at least one said scenario. 
     
     
         9 . The method of  claim 7 , further including processing, via a pathway of the digital electrical computer system, processing model documents which are used to carry out a transaction associated with at least one said scenario. 
     
     
         10 . The apparatus of  claim 2 , wherein the at least one scenario comprises is at least two scenarios, and further comprising an other computer which receives said output scenarios as input, the other computer functionally separated from, but cooperating with, said digital electrical computer system, said cooperating including cooperating in forming a definition of a relationship between the insurance policy death proceeds actual cash flows and the insurance policy death proceeds expected cash flows used in carrying out the financial derivative SWAP transaction. 
     
     
         11 . The apparatus of  claim 3 , wherein the at least one scenario comprises is at least two scenarios, and further comprising an other computer which receives said output scenarios as input, the other computer functionally separated from, but cooperating with, said digital electrical computer system, said cooperating including cooperating in forming a definition of a relationship between the insurance policy death proceeds actual cash flows and the insurance policy death proceeds expected cash flows used in carrying out the financial derivative SWAP transaction. 
     
     
         12 . The apparatus of  claim 4 , wherein the at least one scenario comprises is at least two scenarios, and further comprising an other computer which receives said output scenarios as input, the other computer functionally separated from, but cooperating with, said digital electrical computer system, said cooperating including cooperating in forming a definition of a relationship between the insurance policy death proceeds actual cash flows and the insurance policy death proceeds expected cash flows used in carrying out the financial derivative SWAP transaction. 
     
     
         13 . The apparatus of  claim 5 , wherein the at least one scenario comprises is at least two scenarios, and further comprising an other computer which receives said output scenarios as input, the other computer functionally separated from, but cooperating with, said digital electrical computer system, said cooperating including cooperating in forming a definition of a relationship between the insurance policy death proceeds actual cash flows and the insurance policy death proceeds expected cash flows used in carrying out the financial derivative SWAP transaction. 
     
     
         14 . The method of  claim 6 , wherein the at least one scenario comprises is at least two scenarios, and further comprising cooperating with an other computer which receives said output scenarios as input, the other computer functionally separated from said digital electrical computer system, said cooperating including cooperating in forming a definition of a relationship between the insurance policy death proceeds actual cash flows and the insurance policy death proceeds expected cash flows used in carrying out the financial derivative SWAP transaction. 
     
     
         15 . The method of  claim 7 , wherein the at least one scenario comprises is at least two scenarios, and further comprising cooperating with an other computer which receives said output scenarios as input, the other computer functionally separated from said digital electrical computer system, said cooperating including cooperating in forming a definition of a relationship between the insurance policy death proceeds actual cash flows and the insurance policy death proceeds expected cash flows used in carrying out the financial derivative SWAP transaction. 
     
     
         16 . The method of  claim 8 , wherein the at least one scenario comprises is at least two scenarios, and further comprising cooperating with an other computer which receives said output scenarios as input, the other computer functionally separated from said digital electrical computer system, said cooperating including cooperating in forming a definition of a relationship between the insurance policy death proceeds actual cash flows and the insurance policy death proceeds expected cash flows used in carrying out the financial derivative SWAP transaction. 
     
     
         17 . The method of  claim 9 , wherein the at least one scenario comprises is at least two scenarios, and further comprising cooperating with an other computer which receives said output scenarios as input, the other computer functionally separated from said digital electrical computer system, said cooperating including cooperating in forming a definition of a relationship between the insurance policy death proceeds actual cash flows and the insurance policy death proceeds expected cash flows used in carrying out the financial derivative SWAP transaction.