Questions and Answers About Takaful Part 2

1. The basic concept of mutually that is embodied in the takaful model of insurance include
A B. mutual responsibility B A. mutual help
C D. all of the above D C. mutual protection

2. Takaful is an alternative system of insurance where member contribute their financial resources into common pool based on the principles
A B. profit and loss sharing B A. ta’awun (mutual assistance) and tabarru’ (donation)
C C. business partnership D D. all of the above

3. The following features are unique to takaful EXCEPT
A B. profit and loss sharing B A. cooperative risk sharing
C C. clear financial segregation D D. shariah compliant policies and strategies.

4. In a takaful contract, if the participant dies within the protection period, his/her beneficiary is entitled to
A D. The share of profits made from the cumulated paid contributions.
B A. A whole amount of paid contributions
C B. The paid contributions and share of profits made out of the cumulated paid premiums.
D C. The paid contributions, share of profits made out of the cumulated paid contributions and outstanding tabarru’ contribution.

5. In the wakalah model, the takaful operator acts as an agent on behalf of the
____________________.
A B. Participant B D. Shareholder
C A. Takaful company D C. Beneficiary

6. Identify the stakeholders in the takaful industry.
A C. Takaful operator, participant and beneficiary B A. Takaful operator, participant, and nominee
C D. takaful operator, beneficiary and nominee
D B. Takaful operator, participant, beneficiary and nominee

7. Surplus in the general takaful is obtained after a deduction is made on the following,
EXCEPT.
A C. Retakaful B A. Management costs
C D. Reserves D B. Claims

8. Participating in insurance is BEST considered an example of risk __________ .
A D. Avoidance B A. Mitigation
C C. Transfer D B. Acceptance

9. The amount paid for takaful is called
A C. deductible B B. Contribution
C D. premium D A. closing cost

10. The person named in a life insurance policy to receive the death benefit is called the
A A. policy holder B B. beneficiary
C D. recipient D C. insurance agent

11. All the following are the major gharar EXCEPT
A A. asset or property does not exist
B B. Price not mentioned in absolute amount
C D. It happens to the ancillary object (appendages) only (not the principal and
main subject matter of contract)
D C. asset or property is not free from encumbrances

12. Which insurance professional calculates risk based on loss percentage and determines insurance rates and premiums?
A C. Actuary B A. Accountant
C B. Insurance agent
D D. It happens to the ancillary object (appendages) only (not the principal and
main subject matter of contract)

13. Which one is the main regulatory body of Takaful?
A B. BNM B C. MTA
C A. AAOIFI
D D. It happens to the ancillary object (appendages) only (not the principal and
main subject matter of contract)

14. There is a similarity between Takaful and Conventional Insurance. Choose the correct one.
A B. Based on mutual cooperation
B C. Provide protection in the event of unforeseen events and
contributions must be made to start the coverage
C A. Transfer of risk D D. Claims paid from participants’ fund

15. All these elements include in conventional insurance EXCEPT
A C. Hibah B B. Riba’
C D. Al-Maysir D A. Al-Gharar

16. There are four types of takaful business models. All of them are the types of takaful business models, EXCEPT
A D. Mudharabah B A. Wakalah
C C. Tawarru’ D B. Hybrid

17. _______ is a speculative transaction that involves excessive risk and supposed to foster
uncertainty and fraudulent behaviour which makes the trade similar to gambling
A D. Al-Maysir B C. Aqad
C B. Riba’ D A. Al-Gharar

18. This is an agency model that treats the Takaful operator as an agent of the participants.
A B. Waqf B A. Wakalah
C C. Tawarru’ D D. Mudharabah

19. _____________ is plan that equivalent to the Islamic Life Insurance which provides protection
on death, disability, sickness and personal accident.
A A. Fire Takaful B D. Liability Takaful
C C. Family Takaful D B. General Takaful

20. A portion of contribution under the Tabarru’ fund of a Family Takaful will be segregated and
payable during the maturity known as:
A A. Participant Special Account (PSA) B D. Participant Special Risk Account (PSA)
C C. Participant Large Account (PLA) D B. Participant Invesment Account (PIA)

21. In Insurance, Riba exists when
A A. Unequal exchange of two counter
values B D. Unequal exchange of returns
C C. Unequal exchange of two contracts D B. Unequal exchange of risks

22. Who are the owner of takaful fund based on the wakalah and mdarabah model?
A C. Trustee B A. Takaful Participant
C B. Takaful Operator D D. Beneficiary

23. The takaful scheme in indemnifying the participant, is entitled to recover from third party
whose liable for the loss. This statement refers to
A B. Proximate Cause B D. Warranty
C C. Contribution D A. Subrogation

24. In the mudarabah concept, if there are losses from the investment, the losses shall be
borne by the ______________.
A D. Beneficiary B B. Takaful Operator
C A. Participants D C. Shared by the participants and the
takaful operator

25. Fire takaful is a plan to protect a participant’s
A C. property from an unpredictable event
of fire. B B. vehicle from an unpredictable event of
fire.
C D. money from an unpredictable event of
fire. D A. property from an expected event of fire.

26. Which of the following is NOT a general responsibility of a takaful agent being a promoter of
Islamic finance?
A B. The takaful agent must not conduct any
business during friday prayers. B C. The takaful agent must serve muslim
clients only.
C
D. The takaful agent must have basic
knowledge of fiqh muamalat. D
A. The takaful agent’s character and
conduct must be in conformity with
shariah.

27. IFSA 2013 replaced Acts of ___________
A D. None of above.
B A. Islamic Banking Act 1983 and Takaful Act
1984
C C. Sukuk Act 2012 and Takaful Act 1984 D B. Takaful Act 1984 and Insurance Act

28. Malaysia Financial regulators are BNM and __________
A B. Association B D. Politician
C C. Broker D A. Securities Commission

29. SAC stand for
A C. Shariah Advocate Council B A. Shariah Alert Council
C B. Shariah Advisory Council D D. None of above

30. Are you hungry? Still want continue?
A A. Yes B B. No

Answer Key
1. c 2. b 3. a 4. d
5. a 6. d 7. b 8. c
9. b 10. b 11. c 12. a
13. a 14. b 15. a 16. c
17. d 18. b 19. c 20. d
21. a 22. b 23. d 24. c
25. a 26. b 27. b 28. d
29. c 30. b

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