Blockchain subrogation claims with arbitration

Patent metadata

Field	Value
Publication number	US-12106380-B2
Application number	US-202318206899-A
Country	US
Kind code	B2
Filing date	Jun 7, 2023
Priority date	May 24, 2017
Publication date	Oct 1, 2024
Grant date	Oct 1, 2024

Abstract

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 claim may request arbitration, especially after attempts to settle the claim on-chain between the two parties have failed. An arbitrator may request evidence from the parties and/or request responses from the parties to accept damages calculations and/or settlement offers. Once the claim is resolved, the 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.

First claim

The invention claimed is:

1. A computer-implemented method of settling a subrogation claim by a shared ledger, the method comprising, via one or more processors, servers, and/or associated transceivers:
generating a subrogation claim smart contract, the subrogation claim smart contract: including a demand for arbitration of the subrogation claim, wherein the arbitration demand includes an identity of an arbitrator; and
deploying the subrogation claim smart contract to a shared ledger maintained by a plurality of participants in a shared ledger network according to a set of consensus rules, the subrogation claim smart contract including a contract state and configured to obtain cryptographically signed evidence from participating entities, determine the cryptographically signed evidence is submitted by one of a plurality of predetermined participating entities, and determine that a transaction by the identified arbitrator includes a proof-of-identity to cryptographically prove that the transaction is submitted by the identified arbitrator.

2. The computer-implemented method of claim 1 , further comprising:
broadcasting an update to the subrogation claim smart contract deployed to the shared ledger.

3. The computer-implemented method of claim 2 , wherein the update to the subrogation claim smart contract includes evidence of an insured loss and a proof-of-identity to cryptographically prove that the update is originated by a participating entity.

4. The computer-implemented method of claim 1 , further comprising:
receiving a subrogation claim settlement payment upon resolution of the subrogation claim.

5. The computer-implemented method of claim 1 , wherein the contract state further includes contract data representing acceptance of evidence of an insured loss by a subrogation claimant and by a subrogation defendant, wherein the evidence of the insured loss includes a repair cost to insured property.

6. The computer-implemented method of claim 1 , further comprising:
receiving a request to supply evidence of a loss from the arbitrator; and
broadcasting an update to the shared ledger including a response to the request to supply evidence of the loss.

7. The computer-implemented method of claim 1 , further comprising:
receiving a request to accept a damages calculation from the arbitrator; and
broadcasting an update to the shared ledger including a response to the request to accept a damages calculation from the arbitrator.

8. The computer-implemented method of claim 1 , further comprising:
receiving an agreement to decide the subrogation claim from the arbitrator including inspecting a copy of the shared ledger, wherein the agreement to decide the subrogation claim is included in the shared ledger.

9. The computer-implemented method of claim 1 , wherein the deploying operation includes a proof-of-identity of an entity that paid a claim to an insured for the insured loss.

10. The computer-implemented method of claim 1 , wherein the subrogation claim is an electronic subrogation claim.

11. A computer-implemented method of settling a subrogation claim by a shared ledger, the method comprising, via one or more processors, servers, and/or associated transceivers:
monitoring a blockchain maintained by a plurality of participants in a blockchain network according to a set of consensus rules for an indication of a subrogation claim smart contract, the subrogation claim smart contract a) including a demand for arbitration of the subrogation claim, b) including an identity of an arbitrator, and c) including a contract state, wherein the subrogation smart contract is configured to obtain cryptographically signed evidence from participating entities, and determine that a transaction by the identified arbitrator includes a proof-of-identity to cryptographically prove that the transaction is submitted by the identified arbitrator;
determining whether the demand for arbitration of the subrogation claim satisfies an acceptance condition; and
broadcasting to the blockchain network an indication of acceptance of the demand for arbitration of the subrogation claim if the demand for arbitration of the subrogation claim satisfies the acceptance condition.

12. The computer-implemented method of claim 11 , further comprising:
receiving a request from the identified arbitrator to accept a request for liability for a loss; and
broadcasting a transaction to the blockchain.

13. The computer-implemented method of claim 11 , further comprising:
receiving a request from the identified arbitrator to broadcast a transaction including evidence of loss to the blockchain; and
transmitting the transaction including evidence of loss to the blockchain.

14. The computer-implemented method of claim 11 , further comprising:
receiving a request from the identified arbitrator to broadcast a transaction indicating settlement of the subrogation claim to the blockchain; and
broadcasting a transaction to the blockchain indicating settlement of the subrogation claim to the blockchain.

15. The computer-implemented method of claim 11 , further comprising at least one of:
broadcasting to the blockchain network an indication of withdrawal from arbitration;
broadcasting to the blockchain network an indication of rejection of the demand for arbitration of the subrogation claim if the demand for arbitration of the subrogation claim does not satisfy the acceptance condition;
broadcasting to the blockchain network an indication of a request for representation in the subrogation claim by one or more attorneys;
broadcasting to the blockchain network an indication that evidence regarding the insured loss is not accepted; and/or
broadcasting to the blockchain network a counter-offer in response to the evidence regarding the insured loss.

16. The computer-implemented method of claim 11 , wherein the demand for arbitration of the subrogation claim is added to the blockchain in a block subsequent to a block that includes an allegation of an insured loss.

17. A computer-implemented method of settling a subrogation claim by a shared ledger, the method comprising, via one or more processors, servers, and/or associated transceivers:
monitoring a blockchain maintained by a plurality of participants in a blockchain network according to a set of consensus rules for an indication of a subrogation claim smart contract, the subrogation claim smart contract: a) including evidence regarding an insured loss, b) including a demand for arbitration of the subrogation claim, c) including an identity of an arbitrator, and d) including a contract state, wherein the subrogation smart contract is configured to obtain cryptographically signed evidence from participating entities, and determine that a transaction by the identified arbitrator includes a proof-of-identity to cryptographically prove that the transaction is submitted by the identified arbitrator;
determining whether the evidence regarding the insured loss satisfies an acceptance condition;
generating an indication of acceptance of the evidence regarding the insured loss if the evidence regarding the insured loss satisfies the acceptance condition; and
broadcasting to a blockchain network the indication of acceptance of the evidence.

18. The computer-implemented method of claim 17 , further comprising:
receiving a request from the identified arbitrator to accept a request for liability for a loss; and
broadcasting a transaction to the blockchain.

19. The computer-implemented method of claim 17 , further comprising:
receiv

Assignees

• State Farm Mutual Automobile Insurance Co

Inventors

• Call Shawn M
• Skaggs Jaime
• Bellas Eric
• Graff Douglas A
• Leise William J
• King Vicki
• Alt Jacob J
• Moore Eric R
• Mccullough Stacie A

Classifications

• G06Q2220/00

  Business processing using cryptography · CPC title

• H04L9/50

  using hash chains, e.g. blockchains or hash trees · CPC title

• G06Q20/0655

  e-cash managed centrally · CPC title

• G06Q20/02

  involving a neutral party, e.g. certification authority, notary or trusted third party [TTP] · CPC title

• G06Q40/08 Primary

  Insurance · CPC title