TBE A & C

Tutorial Questions

1. Islām is regarded as “ad-dīn”, which means

A. the way to the holy land

B. the way of life
C. the way to obedience
D. the way to peace

2. Islām comprises of the following EXCEPT;

A. Aqīdah (a set of beliefs),

B. Sharī’ah (a set of laws)
C. Akhlāq (a code of moralities)
D. Fiqh (a code encompassing all thought)

3. ‘Aqīdah generally refers to a firm belief in the fundamentals of Islām which are centered on

A. Imān
B. Akhlāq
C. Jināyat
D. none of the above is true.

4. Select ONE of the following statements which is NOT TRUE.

A. Fiqh ‘Ibādat deals with the relationship between man and Allāh SWT.
B. Fiqh Munākahāt deals with the rulings related to family law.
C.‘Aqīdah deals with behaviour and morality
D. Fiqh Jināyat deals with rulings related to criminal law.

5. The four (4) sources of Sharī’ah are

A. Qur’ān, Sunnah, Ijmā’, Qiyās

B. Qur’ān, Sunnah, Ijmā’, ‘Aqīdah
C. Qur’ān, Sunnah, Ijmā’, ‘Ibādat
D. Qur’ān, Sunnah, Ijmā’, Munākahāt

6. The term “mu‘āmalāt ” refers to

A. matters relating morality

B. matters relating to trade and commerce
C. matters relating to personal behaviour
D. matters relating to conflicts

7. Risk has all of the following characteristics EXCEPT

A. it refers to the likelihood of an event happening

B. it relates to the severity of the negative consequences of an event
C. it entails the possibility of a financial loss
D. there is an element of certainty in risk
 TBE A & C

Tutorial Questions

8. Financial loss may be defined as

A. a loss which will certainly occur from taking a risk

B. a decline in or disappearance of value due to a contingency
C. the loss or gain from speculative risk
D. loss that can never be estimated

9. A risk has two elements. Select the combination that is CORRECT.

A. likelihood of an event happening and the severity of the negative consequences

B. the predictability of an event and the estimation of a loss
C. the certainty of loss and severity of loss
D. none of the above options are CORRECT.

10. The attitude of an individual that increases the chance of loss is

A. Moral Hazard
B. Particular Hazard
C. Morale Hazard
D. Physical Hazard

11. A person driving recklessly in view of being fully covered by Motor Takaful is an example of

A. Moral Hazard
B. Particular Hazard
C. Morale Hazard
D. Physical Hazard

12. One of the following is NOT A STEP in the risk management process

A. Risk Identification
B. Risk Evaluation
C. Risk Creation
D. Risk Monitoring

13. The word “Takaful” is derived from the Arabic verb

A. “Kafālah”
B. “Ad-dīn”
C. “Akhlāq”
D. “‘Aqīdah”

14. Under this system, if any member of a tribe killed another member of the tribe, the close relatives
of the killer are required to pay “blood money” as compensation to the heir of the victim.

A. Al-Dina
B. Al-Aqilah
C. Al-Aqi
D. Al-Ma’aqil
 TBE A & C

Tutorial Questions

15. The concept of _____________ eliminates the element of uncertainty in the Takaful contract
(when compared to life insurance).

A. diyat
B. mudharabah
C. tabarru’
D. none of the above are TRUE.

16. For Muslims, a nominee named in the Takaful certificate will

A. act as an administrator and distribute the proceeds to the rightful heirs according to Faraid Law
B. receive the policy monies as a beneficiary
C. distribute the proceeds to the rightful heirs according to the Distribution Act
D. have a choice to distribute the proceeds to the rightful heirs according to the Distribution Act or
Faraid Law.

17. Insurance can be described as

A. Insurance is a process through which losses suffered by a few is spread to and borne by many
B. Insurance is a process through which losses suffered by many is spread to and borne by a few
C. Insurance is a process through which losses are avoided to ensure maximum profit
D. Insurance is a speculative business where loss is avoided at all costs.

18. Generally speaking an insurance contract is a contract of ___. SELECT the MOST appropriate
answer.

A. mutual profit making

B. mutual risk management
C. indemnity
D. all of the above are TRUE.

19. SELECT the STATEMENT below that is TRUE.

A. Life and Personal Accident Insurance are not contracts of indemnity.

B. For insurance in real property, depreciation must always be taken into account.
C. Only unforeseen and fortuitous losses are insurable.
D. Foreseeable misfortune or losses are generally insurable (except in Life Insurance)

20. A contract that puts the Insured in the same financial position as he was in before the misfortune
occurs is called a contract of_______.

A. replacement
B. indemnity
C. restitution
D. consideration
 TBE A & C

Tutorial Questions

21. The legal maxim al-asl fi al-ashya’ al-ibahah means

A. all things are not permissible unless prescribed otherwise

B. all things are fair and just
C. all things are permissible unless prescribed otherwise
D. only things that are equal are permissible

22. The interest a person has in an insured object or person is called

A. permissible takaful interest.

B. specific interest
C. indemnified interest
D. specific interest

23. A person shall be deemed to have PTI in the person covered if the other person is

I. the spouse or child

II a ward under the age of majority at the time the person entered into the contract of Takaful
III. an employee
IV. a person on whom he is wholly or partly dependent for maintenance at the time of contract

A. I, II and III
B. I, II and IV
C. I, III and IV
D. All of the above are TRUE

24. The IFSA 2013 (Part 2 Schedule 9 Para 4 ) states that the duty of disclosure shall not require the
disclosure of a matter that

I. increases the risk to the licensed Takaful Operator

II is of common knowledge
III. the licensed Takaful Operator knows or in the ordinary course of his business ought to know
IV. in respect of which the licensed Takaful Operator has waived any requirement for disclosure.

A. I, II and III
B. I, II and IV
C. II, III and IV
D. All of the above are TRUE

25. When one party has the right to "step into the shoes" of another party for the purpose of bringing a
claim for damages, the principle used is called

A. Authorization
B. Power of Attorney
C. Substitution
D. Subrogation
 TBE A & C

Tutorial Questions

26. The main purpose of Bank Negara Malaysia (BNM) is_____. Select the option that is FALSE

A. to issue currency, act as banker and adviser to the

B. undertake all economic activity for the government and country
C. act as banker and adviser to the government
D. regulate the country's financial institutions

27. BNM role as supervisor for the Takaful industry is to achieve the following objectives. SELECT the
COMBINATION THAT IS TRUE.

I. Preserve the stability of Takaful Industry

II. Promote strong governance standards in the management of Takaful Operators
III. Create powers to integrate all economic activity under its supervision
IV. Approve all investment of Takaful Operators to maximize participant returns

A. I & II
B. I, II & III
C. II, III & IV.
D. All of the above are TRUE.

28. The key objectives of Malaysian Insurance and Takaful Brokers Association (MITBA) are ____.
Select the option below which is FALSE

A. To promote and establish a sound brokerage business in Malaysia in co-operation and consultation
with the DGI
B. To promote and represent the interests of members.
C. To note events, statements and expressions of opinion affecting members
D. To advise Bank Negara on all matters related to the takaful broking business in Malaysia.

29 According to IFSA 2013, a Takaful agent is defined as a person who does all or any of the
following. One of the following is FALSE

A. Solicits or obtains a proposal for Takaful certificate on behalf of a Takaful Operator

B. Offers or assumes to act on behalf of a Takaful Operator in negotiating a Takaful certificate
C. Does any other act on behalf of a Takaful Operator in relation to the issuance, renewal or
continuance of a Takaful certificate
D. Ensures a takaful certificate is kept in force by whatsoever means possible

30. The main duties of a Takaful broker are as follows. Select the CORRECT COMBINATION
BELOW.

I. Assists the customer in obtaining and renewing a Takaful cover from a Takaful Operator
II Recommends and advises the customer on the most appropriate Takaful plan offered by Takaful
Operators.
III. Takes the initiative to design and create a plan for the customer and seek approval from Takaful
Operators
IV. Ensures the customer will sign a commitment contract with the client to stay with the selected
Takaful Operator for at least 10years.
 TBE A & C

Tutorial Questions
A. I & II
B. I, II & III
C. II, III & IV.
D. All of the above are TRUE.

31. The principal will have the following duty towards the agents. Select the CORRECT option below.

A. To pay the agent all remuneration and expenses as agreed.

B. Indemnify the agent against consequences of any act lawfully or unlawfully done
C. Indemnify the agent against consequences of acting within and outside his authority
D. Ratify all sales actions, presentations and commitments made by the agent to the client.

32. The relationship of the principal and a takaful agent may be terminated as indicated below.

I. By notice of revocation given by the principal to the agent

II By notice of renunciation given to the principal by the agent
III By the completion of the transaction where the authority was given for that transaction only
IV. By expiration of the period stipulated in the contract of agency.

A. I & II
B. I, II & III
C. II, III & IV.
D. All of the above are TRUE.

33. An Indemnity Certificate (under the Medical and Health Takaful) is one that

A. reimburses the participants for relevant medical expenses incurred.

B. reimburses the participants for critical illness only
C. reimburses the participant for death under the education plan
D. reimburses the participant for the TPD caused by accidents only

34. ________ is a fixed amount the participant must first pay regardless of the total cost of an eligible
benefit under the medical and health takaful.

A. Standard disbursement
B. Fixed disbursement
C. Deductible
D. Co-payment

35. Select the combination that is TRUE about Cashless Hospital Admission

I. Upon admission of a participant to a panel hospital, a letter of guarantee is issued and the hospital
deposit may be eliminated.
II. Upon discharge from the hospital, the participant does not have to settle the bill with the hospital.
III. All the eligible benefits will be taken care of by the Takaful Operator.
IV. The claimant only needs to pay for non-reimbursable charges.

A. I & II
B. I, II & III
C. II, III & IV.
D. All of the above are TRUE.
 TBE A & C

Tutorial Questions

36. A Hospitalisation and Surgical Takaful plan may be extended to cover the following EXCEPT

A. Hospital Cash Allowance.

B. Outpatient Cancer Treatment.
C. Critical illnesses
D. Outpatient Kidney Dialysis

37. “This plan provides participants with daily cash benefit, should the participant be hospitalised due
to all causes, subject to the terms and conditions of the certificate/rider” describes

A. Hospitalisation Income Benefits plan.

B. Post-Hospitalization Benefits plan.
C. Hospital Cash Allowance plans.
D. Outpatient Treatment plan.

38. A form of medical cost sharing in a Medical and Health Takaful plan where the participant has to
pay a certain amount of his medical fees describes the practice of

A. Co-payment
B. Co-Sharing
C. Co-Takaful
D. Co-Caring

39. What is the meaning of the term ‘morbidity’?

A. It is the probability of death

B. It is the accuracy of calculating the mortality of participants
C. It is the probability of a disability resulting from an accident or illness
D. It is the science of studying the buying behaviour of participants.

40. The main characteristics of Medical and Health Takaful will include the following. Select the
COMBINATION that is TRUE.

I. the risk increases with time in medical and health takaful

II. the risk decreases with time in medical and health takaful
III. the policy is terminated once a claim is made
IV. the policy is not terminated even if there is a claim provided the allowed limit is not exceeded

A. I & II
B. I & III
C. I & IV.
D. II & IV.

41. Select the STATEMENT which is NOT true about the free-look period.

A. The free-look period is 15 days from the delivery date of the certificate.
B. It is also called the ‘cooling-off’ period
C. Participants can return the certificate but all the contribution paid will be forfeited
D. When the policy is returned, the Operator can only deduct expenses incurred for the medical
examination from the contributions paid
 TBE A & C

Tutorial Questions

42. The contributions for a group medical and health plan is calculated based on the

A. average age of the group

B. average duration of employment
C. the average remuneration of the group
D. the average height and weight of the group.

43. The contributions for a group medical and health plan is calculated based on the

A. average duration of employment

B. degree of occupational hazard
C. the average remuneration of the group
D. the degree of absenteeism rate from work of the group

44. The degree of occupational hazard can be explained as

A. the cause of accidents at work

B. degree of risk that is peculiar to a particular type of occupation
C. the rate of accidents that occur within an occupational class
D. the degree to which the risk hazard materializes in all occupational classes

45. Underwriting is the process of

A. selecting risks for Takaful and classifying them according to their risk profiles so that the
appropriate rates and terms may be assigned
B. selecting risks for Takaful and classifying them according to their cost profiles
C. occupational and selecting risks for Takaful and classifying them according to their occupational
and age profiles
D. selecting risks for Takaful and classifying them according to the participant payment capacity

46. The main purpose of underwriting is

A. to protect the Takaful fund from undue investment risk by selecting appropriate funds
B. to ensure the operations of the Takaful operator are streamlined and efficient
C. to protect the Takaful fund from undue financial strain or exposure
D. to ensure the agency force is well aware of providing needs based solutions

47 What do you understand the term “Anti-selection”?

A. Anti-selection occurs when more sub-standard risks are accepted for coverage
B. Anti-selection is a term used to describe the hesitation to buy takaful plans.
C. Anti-selection occurs when more standard risks are accepted for coverage
D. Anti-selection is a term to describe favouritism shown by underwriters
 TBE A & C

Tutorial Questions
48. A teacher working in a school near the home will be classified as ____ in the occupational class.

A. Class 1
B. Class 2
C. Class 3
D. Class 4

49. The certificate is signed by an authorized official of the Takaful operator under the

A. Operative Clause
B. Recital Clause
C. Attestation Clause
D. The Heading

50. The Heading in the proposal form will

A. introduce the Takaful Operator and participant

B. carry the full name and the registered address of the Takaful Operator
C. spell out the terms and conditions of the certificate
D. detail the exclusion under the certificate.

51. Select the CORRECT COMBINATION below which can be used to settle claims disputes.

I. Negotiation and Compromise Settlement

II. Mediation
III. Arbitration
IV. Litigation

A. I & II
B. I, II & IV
C. II, III & IV
D. All of the above

52. The characteristics of an Arbitration process will include the following:

I. arbitration takes place in court

II. the two sides select an impartial third party (an arbitrator)
III. the parties agree in advance to comply with the arbitrator's award
IV. both parties participate in a hearing

A. I & II
B. I, II & IV
C. II, III & IV
D. All of the above
 TBE A & C

Tutorial Questions

53. The following shows the claims disputes options and its explanation. Select one the following that
is FALSE

A. Negotiation and Compromise Settlement: The claimant meets the Takaful Operator to settle the
dispute through discussions.
B. Litigation: A claimant takes the Takaful Operator to court.
C. Arbitration: It provides the claimant the right to appoint any third party to settle the dispute
D. Mediation: The dispute is settled by an Ombudsman for Financial Services created under the
Financial Services Act 2013 and Islamic Financial Services Act 2013.

54. The takaful contribution will be apportioned to

I. Participants’ Risk Fund

II. Participant’s Investment Fund
III. Participant’s Balanced Fund
IV. Participant’s Retained Fund

A, I, & II
B. I, II & III
C. II, III & IV
D. All of the above

55. A Participant’s Investment Fund (PIF) is a proportion of the participant’s Takaful contribution that

A. will be credited for mutual sharing

B. will be made available to the homeless and needy
C. will be credited for the purpose of savings and investment
D. will be made available to shareholders when the Takaful fund is insufficient to meet claims

56. Under the ________ Model the profit will be shared between the participant and the Takaful
Operator according to a pre-agreed ratio.

A. Wakalah
B. Hybrid
C. Tabarru
D. Muḍārabah

57. Section 141 of the IFSA 2013 covers the issue of

A. mis-statement of age
B. capacity to contract
C. suppression of material fact
D. free-look period

58. Under the Group Retirement Scheme, the following benefits are payable upon the participant’s
death or TPD. Select the MOST APPROPRIATE answer.

A . the Sum Covered is payable.

B. the accumulated amount in the Participant Investment Fund is payable.
C. the Sum Covered plus the accumulated amount in the Participant Investment Fund is payable
D. the sum covered and any surplus in the Participant Risk Fund is payable
 TBE A & C

Tutorial Questions

59. The Group Credit Takaful plan is designed ______.

A. to help a participant obtain financing.

B. to guarantee the payment of a lump sum to the participant’s family which may be used for any
purpose
C. to pay the Takaful Operator for all contributions of certificates owned by the participant.
D. to pay off outstanding financing facility/debt to any financial institution in the event of the
participant’s death or total and permanently disability.

60. The major surgical and hospitalization benefits rider under the Group Family Takaful Plans pays

A. room charges subject to certain ceiling on both the amount and the number of days in a year that
the participant can avail of the benefit.
B. room charges are not subject to any ceiling on both the amount and the number of days in a year
that the participant can avail of the benefit.
C. does not pay room charges but only covers the costs of surgical procedures
D. all expenses incurred as long as the expenses are related to medical conditions of the participant
and the dependents.

61. A replacement certificate stamped “Duplicate Certificate” by the Takaful Operator

A. is recognized as a valid legal document

B. is recognized as a valid legal document only if accompanied by a power of attorney from the
participant
C. is recognized as a valid legal document only if accompanied by a power of attorney from the
Takafuk Operator
D. is recognized as a valid legal document only if accompanied by a power of attorney from the Bank
Negara Malaysia

62. An________, the person who takes over the assigned rights, will have the same rights as those
enjoyed by the _______ who gives up those rights

A. assignor, assignee
B. assignee, assignor
C. trustee, beneficiary
D. beneficiary, trustee.

63. The incontestability clause is covered under ______.

A. Schedule 7(13) of Section 142 IFSA 2013

B. Schedule 9 (13) of Section 141 IFSA 2013
C. Schedule 9 of Section 142 IFSA 2013
D. Schedule 13 of Section 141 IFSA 2013

64. A claim can arise under any one of the following situations. Select the CORRECT COMBINATION
below.

I. death of the beneficiary

II. maturity of the Takaful certificate
III. sickness or disability benefit claims
IV. claims arising under supplementary contracts.
 TBE A & C

Tutorial Questions

A. I, II & III only

B. I, III and IV only
C. II, III & IV only
D. III & IV only

65. The nominee of a Muslim participant shall receive the certificate proceeds as

A. a beneficiary
B. a trustee
C. an heir
D. none of the above is TRUE.

66. It is the responsibility of the Takaful Operator to keep the Claims register ____.

A. open unless the claim has been fully settled

B. for inspection by the participant
C. open for the agent to fill in all the claims details
D. open for the participant to fill in all the claims details before officially submitting the claims

67 Prospective participants must study and consider all key aspects before making any decision on
investment. These will include____. Select the CORRECT COMBINATION below.
I. Investment objectives
II. Availability of Funds
III. Risk
IV. Investment horizon.

A. I, II & III only

B. I, III and IV only
C. II, III & IV only
D. All of the above are TRUE

68. Select the ONE STATEMENT below that is FALSE.

A. As investment horizons increase in length, equities represent a higher risk-adjusted return than
fixed-income securities.
B. As investment horizons increase in length, equities represent a higher risk-adjusted return than
cash.
C. Across shorter investment horizons, equities become the riskier asset class because they carry
higher levels of volatility.
D. Across shorter investment horizons, equities become the less riskier asset class because they
carry higher levels of volatility.

69. In investments the term ‘Money-Weighted Return’ is appropriate when

A. the timing of the initial investment of the portfolio is available

B. the timing of the final investment of the portfolio is available
C. the timing of inflows or outflows from the portfolio are available
D. none of the above can be used in measuring ‘Money-Weighted Return’
 TBE A & C

Tutorial Questions

70. In diversification of assets, the investor must consider investing across____. SELECT the option
that is FALSE.

A. asset classes
B. countries
C. industries
D. none of the above is TRUE.

71. ___________ refers to all type of liquid instrument with minimal or no risk. Select the CORRECT
OPTION below.

A. Equities
B. Cash and deposit
C. Diversified investments
D. Property investments

72. The profit rate of Islamic Bank Accounts

A. are normally low and do not protect the investment against inflation
B. are moderate in nature and provide some hedge against inflation
C. are reasonable and allows the investor to make some profits
D. are high enough to enable the investor to enjoy good profits.

73. It is described as a certificate of trust for the ownership of an asset, or certificates of usufruct. This
instrument is ____.

A. Sukuk
B. Specialized Investment Account
C. Government Investment Issue
D. Specialized Government Investment

74. A capital protected fund is defined as ______.

A. a mutual fund that guarantees the initial investment and it can be liquidated anytime.
B. a mutual fund that does not have any guarantee and it can be liquidated anytime.
C. a mutual fund that guarantees the initial investment, plus any capital gains, if it is held for the
contractual term.
D. a mutual fund that only guarantees the initial investment, if it is held for the contractual term.

75. Under the single contribution investment-linked plan

A. the sum covered is usually 100% of the single contribution paid subject to a minimum amount
(RM5,000).
B. . the sum covered is usually 125% of the single contribution paid subject to a minimum amount
(RM5,000).
C. the sum covered is usually 125% of the single contribution paid subject to a minimum amount
(RM10,000).
D. the sum covered is usually 100% of the single contribution paid subject to a minimum amount
(RM10,000).
 TBE A & C

Tutorial Questions

76. The difference between an investment-linked takaful and a family takaful plan is shown below.
Select the match that is FALSE.

Investment linked plan Family takaful plan

A The participant may select funds of his
choice
B The returns depend on the fund manager’s
overall investment performance.
C The participants are allowed to change the
contribution payments
D All fees and charges are not disclosed to
the participants
Investments are at full discretion of the Takaful
Operator
The returns depend on the Takaful operator’s
overall investment performance.
Contributions are fixed throughout the period of
the certificate
Fees and charges are fixed throughout the
period of Takaful

77. The benefits of an investment linked takaful plan includes all of the following EXCEPT

A. Diversification of Fund
B. Diversification of Risk
C. Dollar cost Averaging
D. Total control of the investments by the government

78. When a security/instrument that has been invested in cannot be readily sold and converted into
cash, the risk that arises is called_________.

A. Investment risk
B. Liquidity risk
C. Static risk
D. Conversion risk

79. The risk associated with the adverse movements in currency exchange rates related to an
investment is called

A. Liquidity risk
B. Currency risk
C. Default risk
D. Strategic risk

80. Investment-linked funds can be structured into the following ways:

I. Accumulation units
II. Distribution units
III. Cumulative units
IV. Aggregated units

A. I & II
B. I, II & III
C. I, III & IV
D. All of the above are TRUE
 TBE A & C

Tutorial Questions

81. In the risk exposure of the various investment funds, select the arrangement which CORRECTLY
shows the risk from the highest to the lowest risk.

A. Specialized fund, Managed fund , Balanced fund, Cash fund

B. Income fund, Managed fund, Balanced fund, Specialized fund
C. Cash fund, Managed fund, Income fund, Property fund
D. Income fund, Balanced fund, Property fund, Managed fund

82. The value of a unit in an investment-linked takaful plan is calculated as

A. the total value of the fund divided by the number of contributors

B. the total value of the fund divided by the number of certificates
C. the total value of the fund divided by the total value of the contributions
D. the total value of the fund divided by the total number of units

83. The Takaful Operator will purchase the units for an investment linked plan at the

A. last declared unit price

B. the price of the last unit purchased
C. the price of the last unit sold
D. the price determined by Bank Negara Malaysia

84. In the case of a claim under an investment linked plan, the death benefit can be calculated by the
______ method.

I. Unit Value plus Sum Covered

II. Unit Value or Death Cover (whichever is lower)
III. Unit Value or Death Cover (whichever is higher)
IV. Unit Value plus Sum Covered plus the surplus of the Takaful Operator.

A. I & III
B. I, II & III
C. II, III & IV
D. All of the above

85. For Medical and Education Takaful Plans, the tax relief is _____.

A. RM 2,000 per year

B. RM 3,000 per year.
C. RM 4,000 per year.
D. RM 5,000 per year.

86. The main purposes of the Islamic Financial Services Act 2013 covers___.

I. Protection of Public Interest

II. Promotion of Fairness and Equity
III. Fostering of Competence
IV. Playing a Developmental Role

A. I & II
B. I, II &III
C. II, III & IV
D. All of the above are TRUE
 TBE A & C

Tutorial Questions

87. The main purposes of the Islamic Financial Services Act 2013 covers___.

I. To ensure Takaful Operator is financially insolvent

II. To ensure Takaful Operator, brokers and adjusters (collectively known as licensees under the Act)
are fair and equitable in their dealings with their clients and claimants.
III. To instil high level of professional competence and integrity among Takaful Operator, brokers and
adjusters
IV. Encourage the Takaful industry to take an active part in the economic development of the country

A. I & II
B. I, II &III
C. II, III & IV
D. All of the above are TRUE

88. The minimum death benefit for a single contribution Investment-Linked Takaful product is __.

A. RM 5,000 or 125% of the single contributions, whichever is higher

B. RM 8,000 or125% of the single contributions, whichever is higher
C. RM 9,000 or125% of the single contributions, whichever is higher
D. RM 12,000 or125% of the single contributions, whichever is higher

89. The structured process for an agent to establish customer needs and provide advice involves the
following steps. Select the COMBINATION below that is TRUE.

I. Establishing and defining the client-agent relationship

II. Gathering all relevant financial data, and managing the client’s finances
III. Analyzing and evaluating the client financial status
IV. Developing and presenting recommendations

A. I, II & III
B. I, III & IV
C. I, II &IV
D. All of the above are TRUE

90. The structured process for an agent to establish customer needs and provide advice involves the
following steps. Select the COMBINATION below that is TRUE.

I. Establishing and defining the client-agent relationship

II. Gathering all relevant financial data, including goals
III. Implementing the recommendations
IV. Monitoring the income plan

A. I, II & III
B. II, III & IV
C. I, II &IV
D. All of the above are TRUE

91. The key ingredient to establishing and defining the client-agent relationship is ___.

A. building trust
B. explaining the performance of the Takaful Operator
C. explaining the performance of the takaful funds
D. explaining the products of the Takaful Operator
 TBE A & C

Tutorial Questions

92. In the ‘gathering all relevant financial data including goals‘ stage the role of the agent is to
__.Select the MOST appropriate answer.

A. ensure the agent discusses the issues and collects date related to moral hazard
B. ensure the agent gathers all relevant data that will assist in analysing what is needed in planning
C. ensure the agent discusses the issues and collects data related to morale hazard
D. ensure the agent collects data related to the financial history of the family

93. Under the Code of Ethics and Conduct, The Audit/Disciplinary Committee of the takaful operator is
responsible for ________. SELECT THE STATEMENT THAT IS FALSE.

A. monitoring compliance of the Code by the family takaful intermediaries.

B. the submission of the quarterly report on breaches to Bank Negara Malaysia.
C. reporting to Bank Negara Malaysia on the corrective or punitive actions taken for the breaches.
D. ensuring all intermediaries do not undertake the general takaful business.

94. Under the Code of Ethics and Conduct, the General Sales Principles states that an intermediary
shall ________. SELECT THE STATEMENT THAT IS FALSE.

A. ensure that the certificate proposed is suitable to the client’s needs

B. give advice on all matters in the interest of closing the case expeditiously.
C. maintain all information supplied by the prospective participant completely confidential
D. render continuous service to the participant.

95. Under the Code of Ethics and Conduct, the General Sales Principles states that an intermediary
shall ________. SELECT THE STATEMENT THAT IS FALSE.

A. not make inaccurate or unfair criticisms of any takaful operators;

B. not attempt to persuade a prospective participant to cancel any existing certificates
C. render service only upon the request of the participant.
D. not practice ‘twisting’ during the sale.

96. When projected benefits are illustrated in an investment linked plan, it should be made clear

A. that these are based on certain assumptions, and hence are not guaranteed
B. that these are based on certain assumptions, and hence are guaranteed
C. that these are guaranteed by the proceeds from the shareholder’s funds
D. that these are only guaranteed if the Takaful Operator makes a surplus

97. The detriment that arises from the ‘Replacement of Certificate’ include ______. Select the
CORRECT combination below.

I. the participant’s non-forfeiture options will commence again under the new certificate
II. the amount of the annual contribution under the new certificate will be higher based on the
participant’s then attained age.
III. The suicide clause and the incontestable clause (if any) starts all over again
IV. the certificate owner’s persistency or retention is affected.

A. I, II & III
B. I, II & IV
C. II, III & IV
D. All of the above
 TBE A & C

Tutorial Questions

98. Some of the Seven Principles of the Code of Ethics and Conduct are listed below. Select the
CORRECT combination below.

I. To avoid conflict of interest;

II. To avoid misuse of position;
III. To prevent misuse of information;
IV. To ensure completeness and accuracy of relevant records

A. I, II & III
B. I, II & IV
C. II, III & IV
D. All of the above

99. Some of the Seven Principles of the Code of Ethics and Conduct are listed below. Select the
CORRECT combination below.

I. To ensure confidentiality of communication and transactions between the takaful operator and its
participants and clients.
II. To ensure fair and equitable treatment of all participants and others who rely on or who are associated
with the takaful operator;
III. To conduct business with the utmost good faith and integrity.
IV. To undertake the replacement of a plan if it was not suitable for the participant.

A. I, II & III
B. I, II & IV
C. II, III & IV
D. All of the above

100. BNM’s guideline on the “Proper Advice Practices for Family Takaful Business” states that if a
claimant has proved the covered event, the claim has to be settled without undue delay

A. within 30 days
B. within 60 days.
C. within 90 days.
D. there is no time limit to the payment
 TBE A & C

Tutorial Questions

Answers:

1 B 26 B 51 D 76 D
2 D 27 A 52 C 77 D
3 A 28 D 53 C 78 B
4 C 29 D 54 A 79 B
5 A 30 A 55 C 80 A
6 B 31 A 56 D 81 A
7 D 32 D 57 C 82 D
8 B 33 A 58 C 83 A
9 A 34 C 59 D 84 A
10 A 35 D 60 A 85 B
11 C 36 C 61 A 86 D
12 C 37 A 62 B 87 C
13 A 38 C 63 B 88 A
14 B 39 C 64 C 89 B
15 C 40 C 65 B 90 A
16 A 41 C 66 A 91 A
17 A 42 A 67 D 92 B
18 C 43 B 68 D 93 D
19 C 44 B 69 C 94 B
20 B 45 A 70 D 95 C
21 C 46 C 71 B 96 A
22 A 47 A 72 A 97 D
23 D 48 A 73 A 98 D
24 C 49 C 74 C 99 C
25 D 50 B 75 B 100 B