o file:///C:/Users/DELL%20112/Desktop/Group%20A.pdf + Rt to page Page View All Head aloud L Add to Case Study: 2 PART-A (5 Marks) 'A prominent automobile company suffered a significant water event at a parts warehouse when a fire sprinkler malfunctioned in the middle of the night, damaging OMR 150,000 worth of parts. The alarm system failed to notify the monitoring company of the mishap, and an on-site security company failed to notice water coming out the front door during routine overnight inspections. Investigation ascertained the sprinkler system had a fault which was on recall, that the recalled item had been replaced within days of the loss, and that the replaced part was also defective and failed. The Safeguard insurance company assessed the loss and paid the company in question OMR 150,000 as indemnity. Moreover, the automobile company took up the matter against the sprinkler manufacturer with the Court of Law, and the court-ordered to pay the automobile company a sum of OMR 150,000. This was in addition to the compensation received from the insurer. During the investigation, causes of the damage were attributed to a faulty sprinkler system and the irresponsibility on part of the on-site security company.' the-college/announcements/final-assessment-timetable-041620 1 TT search o file:///C/Users/DELLS20112/Desktop/Group%20A.pdf 2 Add notes + Ritto page ID Pageview | A Read aloud insurer. During the investigation, causes of the damage were attributed to a faulty sprinkler system and the irresponsibility on part of the on-site security company.' 43 You are required to: a) Identify the parties involved in the case. (50 words minimum/ 1 Mark) b) Examine and explain which principles of insurance apply to the above scenario? (150 words minimum/2 Marks) c) Critically evaluate the sequence of events in the case and identify if any of the insurance principles have been violated. (100 words minimum/2 Marks) the-college/announcements/final-assessment-timetable-041620 roup Apdf o file:///C:/Users/DELL%20112/Desktop/Group%20A.pdf + Rt to page TD Pageview | A Read aloud Add Dots Case 2: PART-B (5 Marks) Delight Life Insurance company is one of the leading insurance companies in the Sultanate of Oman and always on the lookout for talented, committed, and qualified people who are driven to achieve profitable growth for the company as well as motivated to progress in their career. You are a fresh accounting graduate and joined the company, as a part of your training manager of the company asked you to join as an assistant to the actuaries. As trainee actuaries explained to you that the Revenue account or Balance sheet of a life insurance company does not disclose the profit or loss for a given period. To ascertain profits or losses of a life insurance company a Valuation Balance Sheet is prepared once in every two years. He provided with you with amounts of balances of Life assurance funds for the previous year and current year respectively, as on 31st March 2018 is OMR 3,200,275 and 31st March 2019 was OMR 5,940,300 and net liability for the period was given as OMR 2,940,300 about the college/announcements/final-assessment-timetable-041620 ere to search 12/Desktop/Group%20A.pdf 2,940,300. Ritto page Pageview A Read aloud The other information also relates to the current period 31* March 2019 was given as Premiums collected for the current period OMR 3,872,500, an interim bonus paid during the period OMR 127,750, Dividend still unpaid for the 31 March 2019 was OMR 40,000 and surplus brought forward from the period 2018 was OMR 113,000. Actuaries also told you that the company is planning to create a reserve of 40% of its available Life Assurance fund at the end of 31 March 2019 whereas there is no change in net liability and other information related to the current year. You are asked to prepare: a) Valuation Balance Sheet for Delight Life Insurance Company as at 31 March 2019. (2 Marks) b) Find the surplus earned by the company for the period 2019. (2 Marks) c) Comment on the changes of surplus earned for 2019 and explain is it advisable to create a new reserve. (50 Words minimum/1 Mark) /the-college/announcements/final-assessment-timetable-041620 E o file:///C:/Users/DELL%20112/Desktop/Group%20A.pdf + Rt to page Page View All Head aloud L Add to Case Study: 2 PART-A (5 Marks) 'A prominent automobile company suffered a significant water event at a parts warehouse when a fire sprinkler malfunctioned in the middle of the night, damaging OMR 150,000 worth of parts. The alarm system failed to notify the monitoring company of the mishap, and an on-site security company failed to notice water coming out the front door during routine overnight inspections. Investigation ascertained the sprinkler system had a fault which was on recall, that the recalled item had been replaced within days of the loss, and that the replaced part was also defective and failed. The Safeguard insurance company assessed the loss and paid the company in question OMR 150,000 as indemnity. Moreover, the automobile company took up the matter against the sprinkler manufacturer with the Court of Law, and the court-ordered to pay the automobile company a sum of OMR 150,000. This was in addition to the compensation received from the insurer. During the investigation, causes of the damage were attributed to a faulty sprinkler system and the irresponsibility on part of the on-site security company.' the-college/announcements/final-assessment-timetable-041620 1 TT search o file:///C/Users/DELLS20112/Desktop/Group%20A.pdf 2 Add notes + Ritto page ID Pageview | A Read aloud insurer. During the investigation, causes of the damage were attributed to a faulty sprinkler system and the irresponsibility on part of the on-site security company.' 43 You are required to: a) Identify the parties involved in the case. (50 words minimum/ 1 Mark) b) Examine and explain which principles of insurance apply to the above scenario? (150 words minimum/2 Marks) c) Critically evaluate the sequence of events in the case and identify if any of the insurance principles have been violated. (100 words minimum/2 Marks) the-college/announcements/final-assessment-timetable-041620 roup Apdf o file:///C:/Users/DELL%20112/Desktop/Group%20A.pdf + Rt to page TD Pageview | A Read aloud Add Dots Case 2: PART-B (5 Marks) Delight Life Insurance company is one of the leading insurance companies in the Sultanate of Oman and always on the lookout for talented, committed, and qualified people who are driven to achieve profitable growth for the company as well as motivated to progress in their career. You are a fresh accounting graduate and joined the company, as a part of your training manager of the company asked you to join as an assistant to the actuaries. As trainee actuaries explained to you that the Revenue account or Balance sheet of a life insurance company does not disclose the profit or loss for a given period. To ascertain profits or losses of a life insurance company a Valuation Balance Sheet is prepared once in every two years. He provided with you with amounts of balances of Life assurance funds for the previous year and current year respectively, as on 31st March 2018 is OMR 3,200,275 and 31st March 2019 was OMR 5,940,300 and net liability for the period was given as OMR 2,940,300 about the college/announcements/final-assessment-timetable-041620 ere to search 12/Desktop/Group%20A.pdf 2,940,300. Ritto page Pageview A Read aloud The other information also relates to the current period 31* March 2019 was given as Premiums collected for the current period OMR 3,872,500, an interim bonus paid during the period OMR 127,750, Dividend still unpaid for the 31 March 2019 was OMR 40,000 and surplus brought forward from the period 2018 was OMR 113,000. Actuaries also told you that the company is planning to create a reserve of 40% of its available Life Assurance fund at the end of 31 March 2019 whereas there is no change in net liability and other information related to the current year. You are asked to prepare: a) Valuation Balance Sheet for Delight Life Insurance Company as at 31 March 2019. (2 Marks) b) Find the surplus earned by the company for the period 2019. (2 Marks) c) Comment on the changes of surplus earned for 2019 and explain is it advisable to create a new reserve. (50 Words minimum/1 Mark) /the-college/announcements/final-assessment-timetable-041620 E