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College of Administration and Finance Sciences Assignment (2) Deadline: Saturday 04/05/2024 @ 23:59 Course Name: Insurance Accounting Student’s Name: Course Code: ACCT 424 Student’s ID Number: Semester: 2nd CRN: 23551 Academic Year: 1445 H (2023-2024) For Instructor’s Use only Instructor’s Name: Mohammed Arshad Khan Students’ Grade: /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 answers 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. College of Administration and Finance Sciences 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