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i have assignment for accounting insurnce can you do it ?
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College of Administrative and Financial Sciences
Assignment 2
Deadline: Saturday 11/11/2023 @ 23:59
Course Name: Insurance Accounting
Student’s Name:
Course Code: ACCT 424
Student’s ID Number:
Semester: 1
CRN:
Academic Year: 1445 H
For Instructor’s Use only
Instructor’s Name:
Students’ Grade: /Out of 15
Level of Marks: High/Middle/Low
Instructions – PLEASE READ THEM CAREFULLY
• The Assignment must be submitted on Blackboard (WORD format only) via allocated
folder.
• Assignments submitted through email will not be accepted.
• Students are advised to make their work clear and well presented, marks may be
reduced for poor presentation. This includes filling your information on the cover page.
• Students must mention question number clearly in their answer.
• Late submission will NOT be accepted.
• Avoid plagiarism, the work should be in your own words, copying from students or
other resources without proper referencing will result in ZERO marks. No exceptions.
• All answered must be typed using Times New Roman (size 12, double-spaced) font.
No pictures containing text will be accepted and will be considered plagiarism).
• Submissions without this cover page will NOT be accepted.
1
Assignment Question(s):
(15 Marks)
Q1. Reinsurance is a form of insurance purchased by insurance companies in order to mitigate risk.
Essentially, reinsurance can limit the amount of loss an insurer can potentially suffer. In other words,
it protects insurance companies from financial ruin, thereby protecting the companies’ customers
from uncovered losses. (5 Mark)
Questions:
a. How do reinsurance companies work?
b. What are the Reinsurance Contracts?
c. Give example of reinsurances companies in KSA and describe their main services
Q2. What is the concept of “Fair Value? Outline the basic difference between fair value and book value
of an asset. Explain the key features of fair value defined by FASB ASC.
(5 Marks)
Q3. XYZ Company has the following financial data:
Particulars
Total Profit for the Year
General Takaful Assets (Year 2014)
General Takaful Assets (Year 2015)
Cash
Short-term Investment
Short term liabilities
Underwriting Surplus Distributable to Participants/Participants’ Share of Profit
Gross Contribution
Net Contribution
Wakalah Fee
Commission Paid
Management Expense
Net Claim Incurred
Earned Contribution
You are required to calculate:
a) Return on Assets
b) Quick Liquidity
c) Surplus Distribution Ratio
d) Expense Ratio
e) Claims Ratio
2
(5 marks)
Amounts (SAR)
377,500
1,390,000
1,517,500
11,500
23,500
85,000
145,500
958,000
662,500
77,500
28,300
58,000
287,500
632,500
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