Accounting Question

Assignment Questions:(Marks 15)

• 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)
• Define an Insurance Company as per Federal Income Taxation. State the conditions for an Insurance company to be treated as Tax Exempt. (2 Marks)
• What are primary methods used to assess guaranty funds assessments for property and liability insurance firms? Explain them. (3 Marks)
• Pass the Journal Entries of the following transactions for Takaful Products:(5 Marks)

• Contribution made by new the participants SAR 10,000, Contribution made by renewal participants SAR 5000
• Commission given tothe agentSAR 2000
• Portfolio Investment made by Takaful Operators SAR 12,000
• Management Expenses incurred For fund managerSAR 3,000

Selling of Investment Assets of worth SAR 8500 sold for SAR 9000