Overview
- 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.
Assignment Questions:(Marks 15)
Q1. What is internal control, and how is it related to the reliability of financial reporting? Explain the components of internal control with suitable examples.(5 Marks) (Week 8, Chapter 7)
Answer:
Q2. Explain the role of “Guaranty Funds and Other Assessments” for property and liability insurance firms. What are the methods of assessing guaranty funds? Explain with suitable examples. (5 Marks) (Week 9, Chapter 8)
Answer:
Q3. PCL Company has the following financial data: (5 marks) (Week 11, Chapter 4)
| Particulars | Amounts (SAR) |
| Total Profit for the Year | 210,000 |
| General Takaful Assets (Year 2015) | 510,000 |
| General Takaful Assets (Year 2016) | 540,000 |
| Cash | 90,000 |
| Short-term Investment | 95,000 |
| Short term liabilities | 90,000 |
| Underwriting Surplus Distributable to Participants/Participants' Share of Profit | 123,000 |
| Gross Contribution | 345,000 |
| Net Contribution | 244,000 |
| Wakalah Fee | 85,000 |
| Commission Paid | 71,000 |
| Management Expense | 78,500 |
| Net Claim Incurred | 155,000 |
| Earned Contribution | 230,000 |
Calculate:
- Return on Assets
- Quick Liquidity
- Surplus Distribution Ratio
- Expense Ratio
- Claims Ratio
Answer: