Blockchain subrogation payments

Patent metadata

Field	Value
Publication number	US-12548080-B2
Application number	US-202318238765-A
Country	US
Kind code	B2
Filing date	Aug 28, 2023
Priority date	May 24, 2017
Publication date	Feb 10, 2026
Grant date	Feb 10, 2026

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. Evidence regarding the value of the subrogation claim is sent to the shared ledger by entities involved in the claim such as sending to a smart contract deployed on the shared ledger. The parties to the subrogation claim may supplement evidence and settlement proposals on the blockchain by broadcasting a transaction or sending data to the smart contract. Once the claim is resolved, the parties may settle the subrogation payment off-chain or may transact a token having value on the chain. A subrogation smart contract may be programmed to release funds under certain conditions including holding a bond by a claimant and/or upon final resolution of the subrogation claim.

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 or servers:
generating a subrogation claim, the subrogation claim identifying a subrogation defendant and including information regarding an insured loss; deploying the subrogation claim to a shared ledger maintained by a plurality of participants in a shared ledger network according to a set of consensus rules, the shared ledger configured to receive cryptographically signed evidence from participating entities each having a public cryptographic key assigned to the participating entity, and to receive a proof-of-identity for participating entities providing evidence via signed private cryptographic keys, wherein the plurality of participants append data to the shared ledger in response to determining that the data satisfies a set of consensus rules, the set of consensus rules including that a participating entity providing evidence includes a proof-of-identity, and that the proof-of-identity corresponds to one of a plurality of predetermined participating entities; and broadcasting an update to the subrogation claim deployed to the shared ledger, wherein the update further includes a proof-of-identity to cryptographically prove that the update is originated by one of the participating entities.

2 . The computer-implemented method of claim 1 , wherein the deploying operation includes deploying a smart contract.

3 . The computer-implemented method of claim 2 , wherein the smart contract includes a contract state, the contract state including evidence of the insured loss, the contract state further including contract data representing acceptance of evidence of the insured loss by a subrogation claimant and by a subrogation defendant.

4 . The computer-implemented method of claim 3 , wherein the evidence of the insured loss includes a repair cost to insured property.

5 . The computer-implemented method of claim 1 , wherein the deploying operation includes broadcasting a new block to a shared ledger network.

6 . The computer-implemented method of claim 1 , wherein the deploying operation includes broadcasting a transaction to a shared ledger network to be included in a new block.

7 . The computer-implemented method of claim 3 , further comprising:
broadcasting an update to the contract data, the update to the contract data reflecting the receiving operation.

8 . A computer-implemented method of settling a subrogation claim by a shared ledger, the method comprising, via one or more processors or servers:
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, the subrogation claim identifying a subrogation claimant and including evidence regarding an insured loss and a proof-of-identity to cryptographically prove that the evidence regarding the insured loss is originated by a participating entity, the blockchain configured to receive cryptographically signed evidence from participating entities each having a public cryptographic key assigned to the participating entity, and to receive a proof-of-identity for participating entities providing evidence via signed private cryptographic keys, wherein the plurality of participants append data to the blockchain in response to determining that the data satisfies the set of consensus rules, the set of consensus rules including that a participating entity providing evidence includes a proof-of-identity, and that the proof-of-identity corresponds to one of a plurality of predetermined participating entities; 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 an indication of acceptance of the evidence regarding the insured loss.

9 . The computer-implemented method of claim 8 , wherein the indication of the subrogation claim includes a smart contract, the smart contract having a contract state, the contract state including evidence of the insured loss, the contract state further including contract data representing acceptance of evidence of the insured loss by a subrogation claimant and by a subrogation defendant.

10 . The computer-implemented method of claim 8 , further comprising:
broadcasting to the blockchain network a counter-offer in response to the evidence regarding the insured loss.

11 . The computer-implemented method of claim 8 , further comprising:
broadcasting to the blockchain network an indication that evidence regarding the insured loss is not accepted.

12 . The computer-implemented method of claim 11 , further comprising:
remitting payment of a token having value on the blockchain to the subrogation claimant.

13 . The computer-implemented method of claim 12 , further comprising:
broadcasting to the blockchain network an update reflecting a completion of the remitting operation.

14 . A network node having one or more processors in a shared ledger network comprising:
a transceiver configured to exchange shared ledger data with peer network nodes, the shared ledger data including subrogation claim transactions; a storage media configured to store a copy of the shared ledger; and a transaction validator configured to apply a set of consensus rules to shared ledger data received from the peer network nodes, the transaction validator being further configured to append shared ledger data received from peer nodes to the copy of the shared ledger if the shared ledger data satisfies the consensus rules, the shared ledger data including:
a subrogation claim smart contract identifying a subrogation claimant and a subrogation defendant and including information regarding an insured loss, the subrogation claim smart contract configured to obtain cryptographically signed evidence from participating entities, verify that the cryptographically signed evidence is submitted by the subrogation defendant or the subrogation claimant based on a proof-of-identity, and determine whether a settlement amount has been accepted by the subrogation defendant;
a cryptographic hash value from the subrogation claimant representing the settlement amount to the subrogation claim smart contract, wherein the cryptographic hash value is included in a transaction with originator information based on a cryptographic public key associated with the subrogation claimant, and wherein the transaction is cryptographically signed using a cryptographic private key of the subrogation claimant; and
an indication of acceptance of the settlement amount from the subrogation defendant.

15 . The network node of claim 14 , wherein the storage media is further configured to store a copy of a state database of the shared ledger.

16 . The network node of claim 15 , wherein the state database stores a current state of the subrogation claim smart contract.

17 . The network node of claim 14 , wherein the subrogation claim transactions further include a proof-of-identity to cryptographically prove that a subrogation claim transaction is originated by a participating entity.

18 . The network node of claim 17 , wherein the set of consensus rules includes that a participating entity providing evidence includes the proof-of-identity, and that the proof-of-identity corresponds to one of a plurality of known partic

Assignees

• State Farm Mutual Automobile Insurance Co

Inventors

• Skaggs Jaime
• Call Shawn M
• 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