Insurance patent are some patents laws, which a person obtained to use of an invention or improvement in any insurance policy. Some people purchased patent to own the patent which are issued by government. Usually people purchased this without the permission of owner of patent by a license and contract. But the party who will exceed the limits of the contract will liable of all the profits which he/she gained with that patent, to the owner of patent. He/she will also be responsible in case of any harm or damage to the patent (may be intentional or accidental). This insurance patent covers only the invention and technological aspects of any new insurance. But this insurance patent is not completely legal, in many countries this insurance patent is still case. In United States of America many courts encouraged persons who invents insurance policies and the methods of doing business. While these insurance patents may be used to get more reliable and comprehensive about the coverage of invention and improvements of basic process of insurance, like in different methods of insurance of calculating, premium, cost and underwriting etc. Insurance patent is turning a big controversy in the insurance industry, because some people think it positive development in insurance, they says that by protecting the patents an insurance company can invest more amount to develop a product, while other thinks it as negative development. The first insurance patent was issued in 1982. The rate of this insurance patent is about one or two patents every year in USA and those patents are related about different insurance policies. The patents are usually confirmed by the courts and then they are used. The rate of filed patents were about 150 per year before 1998, which was then decreased about 30 after Court of Appeals for the Federal Circuit turned down the appeal of State Bank Decision to invent new methods of business.