SEU How Reinsurance Companies Work and What Are Reinsurance Contracts Questions

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Q1. Reinsurance is a form of insurance purchased by insurance companies in order to mitigate risk. Essentially, reinsurance can limit the amount of loss an insurer can potentially suffer. In other words, it protects insurance companies from financial ruin, thereby protecting the companies’ customers from uncovered losses.Questions: a. How do reinsurance companies work? (1 Mark)b. What are the Reinsurance Contracts? (2 Mark)c. Give example of reinsurances companies in KSA and describe their main services (1 Mark)Q2. What is the concept of “Fair Value? Outline the basic difference between fair value and book value of an asset. Explain the key features of fair value defined by FASB ASC. (3 Marks)Q3. Explain how three of the following elements can affect estimate of loss reserve. (3 marks)üThe claims-handling processüPolicy and exposure formsüInflationüLegal trendsüEnvironmental factorsüMix of claimantsüTimeliness of claim reporting by claimants

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College of Administration and Finance Sciences
Assignment 2
Deadline: Saturday 09/04/2022 @ 23:59
Course Name: Insurance Accounting
Student’s Name:
Course Code: ACCT 424
Student’s ID Number:
Semester: 2
CRN:
Academic Year: 1443 H
For Instructor’s Use only
Instructor’s Name:
Students’ Grade: /Out of 10
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 answered 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.
1
Assignment Question(s):
(Marks 10)
Q1. Reinsurance is a form of insurance purchased by insurance companies in order to mitigate risk.
Essentially, reinsurance can limit the amount of loss an insurer can potentially suffer. In other words,
it protects insurance companies from financial ruin, thereby protecting the companies’ customers
from uncovered losses.
Questions:
a. How do reinsurance companies work?
(1 Mark)
b. What are the Reinsurance Contracts?
(2 Mark)
c. Give example of reinsurances companies in KSA and describe their main services (1 Mark)
Q2. What is the concept of “Fair Value? Outline the basic difference between fair value and book value
of an asset. Explain the key features of fair value defined by FASB ASC.
(3 Marks)
Q3. Explain how three of the following elements can affect estimate of loss reserve. (3 marks)
✓ The claims-handling process
✓ Policy and exposure forms
✓ Inflation
✓ Legal trends
✓ Environmental factors
✓ Mix of claimants
✓ Timeliness of claim reporting by claimants
2

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Explanation & Answer:
3 Questions 300 Words Each

Tags:
Reinsurance Contracts

reinsurance companies

claimshandling process

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