Nicholas E. Eustace, et al. - Page 4




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          accounting.  Some of the software calculated premiums (i.e.,                
          rated policies) and transmitted data between independent agencies           
          and insurance companies (i.e., carriers).                                   
          I.  TAM                                                                     
               In 1983, Applied Systems released the first version of TAM,            
          a program designed to automate the day-to-day functions of                  
          independent agencies.  Applied Systems sold TAM directly to such            
          agencies.  TAM consisted of three modules:  The TAM module, FIM,            
          and First Rate (i.e., rating module).  During the years in issue,           
          Applied Systems sold the TAM and FIM modules together as one                
          product and sold First Rate separately.  The software ran on IBM-           
          compatible personal computers (PC’s) and local area networks                
          (LAN’s).                                                                    
               A.  TAM Module                                                         
               Applied Systems released the first version (i.e., series) of           
          the TAM module in 1983 and the second and third series by 1989.             
          The TAM module enabled an agency to search for prospective                  
          clients whose data matched certain criteria, draft personalized             
          sales letters, generate followup reports, dial telephone numbers,           
          track appointments, access First Rate (i.e., to calculate                   
          premiums), access FIM (i.e., to fill out forms), process                    
          insurance applications, track policy issuance, enter changes and            
          claims, run marketing analysis reports, and process renewals.               








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