Question

Assignment Question(s):​​​​​​

Q1. Read the following features related with types of reinsurances and identify the correct type of reinsurance: ​​​​​​​​​​​

a) This type of reinsurance is also termed as stop loss reinsurance.

b) In this type agreement, the policyholder is unaware about any indemnity reinsurance transactions pertaining to original contract.

c) This type of reinsurance is related with either retaining all claims up to a particular and stated amount by the insurer or retaining each risk.

d) In this type of insurance, the policyholder is required to provide the necessary consent to releasing the ceding company.

Q2. Structures of insurance companies’ financial statements (income statement, balance sheet, cash flow statements) vary than structures the non- insurance organization due to the unique features of the insurance companies. Give a sample of the structures for any selected Saudi insurance company’ financial statements and explain the rational for classifying balance sheet accounts. Write no less than 300 words (2marks)

Answer 1

Q.1 ans: (A)

AS THE INSURER TRANSFERS THE SOME RISK PORTION TO OTHERS, IT IS TERMED AS STOP LOSS REINSURANCE.

Q.2

ANS: SAUDI INSURANCE CO vary from the non insurers company by maintaining all claims paid & premiums received as this main business activity of insurance companies. they to reprsents the balance sheet, comprehensive income statement, cashflowstatement, statement of changes in equity & notes to accounts and they notes to accounts disclose risk of insurance they adopted.

format will be like assets first and then liabilities , income statement, includes revenue & expenses includes other equity,cashflowstatement- operating cash, investment & fianancial cash , then changes in equity statement , followed by notes to accounts