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Description 424 ASSAIGNMENT 2 Assignment Questions: (Marks 15) 1. Line of Insurance can further be classified as primary coverage or reinsurance a

May 31, 2024

Description

424
ASSAIGNMENT 2
Assignment Questions:
(Marks 15)
1. Line of Insurance can further be classified as primary
coverage or reinsurance assumed. Primary coverage
involves policies written between an insurer and a customer
directly. Reinsurance coverage involves the transfer of the
insurer’s risk to a reinsurer. Explain the various types of
reinsurance in detail.
(5 Marks)
2. Define an Insurance Company as per Federal Income
Taxation. State the conditions for an Insurance company to
be treated as Tax Exempt. (2 Marks)
3. What are primary methods used to assess guaranty funds
assessments for property and liability insurance firms?
Explain them. (3 Marks)
4. Pass the Journal Entries of the following transactions for
Takaful Products:
(5 Marks)
a) Contribution made by new the participants SAR 10,000,
Contribution made by renewal participants SAR 5000
b) Commission given to the agent SAR 2000
c) Portfolio Investment made by Takaful Operators SAR
12,000
d) Management Expenses incurred For fund manager SAR
3,000
e) Selling of Investment Assets of worth SAR 8500 sold for
SAR 9000

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Description 424 ASSAIGNMENT 2 Assignment Questions: (Marks 15) 1. Line of Insurance can further be classified as primary coverage or reinsurance a

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