TBE A&C PDF Revision Question

1 Islam is not a mere religion but “ad-din”, meaning _____________.

A. the worship life
B. the way of life
C. the rules of life
D. the human life
2 The key elements of Islam comprise of ________. Select the CORRECT COMBINATION
below.
I. Aqidah (a set of beliefs)
II. Shariah (a set of laws)
III. Ibadat (a set of rulings)
IV. Akhlaq (a code of moralities)

A. I and II only
B. I, II and III only
C. I, II and IV only
D. I, II, III and IV
3 In terms of Shariah, there are five Maqasid (foundational goals). Which of the following
comprise of these foundation goals?
I. Religion – Shariah requires the preservation and protection of Din (religion) under all
circumstances.
II. Life – Shariah requires the preservation and protection of life under all circumstances
III. Lineage – Shariah requires the preservation and protection of descendants and
honor under all circumstances
IV. Intellect – Shariah requires the preservation and protection of intellect and mind
under all circumstances

A. I, II, III
B. II, III, IV
C. I, II, IV
D. All of the above
4 For Shariah compliance, the basic principles that must be followed under muamalat are
__________. Select the CORRECT COMBINATION below.
I. Justice and Fair Dealing
II. General Rule of Permissibility
III. Freedom to Contract
IV. Mutual Consent

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

This document is confidential and for internal training purposes only.

 5 The basis of all commercial activity is through the formation of contracts which is also
referred to as ________.
A. Ijma’
B. Qiyas
C. Aqad
D. Qabul
6 To enter into a valid contract there are 3 elements which need to be fulfilled. Select the
CORRECT COMBINATION below.
I. There must be an Offeror and offeree (contracting parties)
II. There must be an Offer and acceptance
III. Rules
IV. There must be a Subject matter of the contract and consideration

A. I and II only
B. I, II and IV only
C. II and III only
D. All the above
7 The word “kafalah” means ____________.
A. to pay
B. to jointly guarantee
C. to be compassionate
D. to be responsible
8 From the physical and financial perspectives, the following are the benefits of Takaful.
Select ONE of the following statements which is NOT TRUE.
A. It provides financial assistance for the unfortunate and needy through the concept of
tabarru’ where a part of the contribution will be apportioned to the risk fund.
B. It provides financial protection and security for a family against financial loss caused
by the death of a breadwinner. It provides an avenue of ensuring the maintenance of
the life-style of beneficiaries.
C. It helps the participants to prepare sufficient income for themselves and their
dependents to maintain their standard of living when permanent disability strikes.
D. Zakat (tithe) and corporate tax paid by takaful operators cannot be used for the
purpose of community development and nation building.
9 All of the following are types of Riba EXCEPT
A. Riba Buyu
B. Riba Duyun
C. Riba Khalifah
D. Riba Nasiah
10 Tabarru’ is an Arabic word that means ____________.
A. sharing
B. mutual help
C. donation
D. consent

This document is confidential and for internal training purposes only.

 11 A contract is presumed to have elements of gharar when:
I. The parties are unsure as to the certainty of the event, that is, whether such an event
will or will not occur.
II. The subject matter is not within the knowledge of the parties.
III. There is no certainty as to the existence of the subject matter.
IV. Its acquisition is in doubt.

A. I, II, III
B. I, III, & IV
C. II, III & IV
D. All of the above
12 Which of the following is NOT TRUE about Takaful?
A. Part of the contribution becomes a tabarru’.
B. The profit and/or surplus is shared among the participants.
C. The fund belongs to and is managed by Takaful Operator.
D. Takaful is based on Islamic principles and free from any of the forbidden elements.
13 Speculative risk is a __________________.
A. Risk where there is a loss or no loss.
B. Risk where there is a loss, no loss or gain.
C. Risk that affects the whole community or a large number of people within the
community.
D. Risk that affects an individual.
14 Once the risks have been evaluated and prioritized, it is time to develop a risk
management plan by selecting the appropriate risk control measures. Select the
CORRECT COMBINATION of risk management options below.
I. Risk transfer
II. Risk retention
III. Risk avoidance
IV. Risk control

A. I and II only
B. I, II and III only
C. I, II and IV only
D. I, II, III and IV
15 Monitoring and Reviewing the Risk Management Plan involves periodical reviews,
monitoring the implementation process, and the progressive revision of the plan to
incorporate any changes. All of the following are characteristics of periodical reviews,
EXCEPT
A. Identify any deficiencies or adjustments that have to be made to the plan
B. Ensure the objectives of the plan are not met
C. Identify any new unfolding needs.
D. Reviews should be done at least once a year or when there is a change in the
financial and risk circumstances of the client.
16 ___________________ is key to ensuring that both the individual and business are able
to withstand the financial strain caused by a peril.
A. Risk Management
B. Risk Severity
C. Risk Avoidance
D. Risk Frequency

This document is confidential and for internal training purposes only.

 17 Any action taken by the insured to improve the risk to achieve a fair and acceptable
level is known as ____________.
A. Risk transfer
B. Risk control
C. Risk avoidance
D. Risk reduction
18 Which of the following is NOT an example of a personal risk?
A. Risk of poor health
B. Risk of unemployment
C. Risk of inflation in the nation
D. Risk of insufficient income during retirement
19 A takaful participant entering into a contract of family takaful shall have a permissible
takaful interest in the person covered at __________.
A. the time of application and PTI at the time the takaful benefits are payable
B. at the time of application only
C. at the time of claim only
D. at the time the takaful benefits are payable
20 The duty of disclosure shall not require the disclosure of a matter that ________. Select
the statement below which is FALSE.
A. diminishes the risk to the Takaful Operator
B. is not of common knowledge
C. the Takaful Operator knows or in the ordinary course of his business ought to know
D. in respect of which the Takaful Operator has waived any requirement for disclosure
21 ________ can be defined as a mechanism used by the Takaful Operator to provide
compensation in an attempt to place the participant in the same pecuniary position
after the loss as enjoyed (by the participant) immediately before the loss.
A. Principle of Subrogation
B. Principle of Contribution
C. Principle of Indemnity
D. Principle of Proximate Cause
22 After identifying and evaluating the hazards associated with the risk (proposal), the
underwriter will either _____________.
I. accept the risk at standard rates
II. accept the risk with condition(s)
III. decline the risk
IV. defer the proposal

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

This document is confidential and for internal training purposes only.

 23 Permissible takaful interest exists when there is a relationship between participants and
the subject matter, normally arising from several situations. Which of the following
comprise of these situations?
I. Property owners will lose financially if their properties are damaged or destroyed thus
PTI can be established.
II. PTI can also exist when there is a potential financial loss arising from legal liability.
III. PTI can also exist when there is a potential financial gain arising from legal liability.
IV. PTI can be established if there is a provision in the contract that one party is
financially responsible for any loss or damage to the property and third-party liability.

A. I and II only
B. I, II and III only
C. I, II and IV only
D. I, II, III and IV
24 The principle holding that two or more Takaful Operators who are each liable for a
covered loss should participate in the payment of that loss refers to ______.
A. Principle of Subrogation
B. Principle of Contribution
C. Principle of Indemnity
D. Principle of Proximate Cause
25 The tabarru’ portion of the participant’s contribution for takaful coverage is placed into
the _______________.
A. Participant Risk Fund
B. Participant Investment Fund
C. Participant Growth Fund
D. Participant Agreement Fund
26 The contract that will define the ratio of the profit to be shared between the two
parties in takaful is referred to as ____________.
A. Muḍarabah
B. Wakalah
C. Tabarru’
D. Aqad
27 Which of the following statement is TRUE with regards to the Wakalah Model for
General Takaful?
A. Participants’ pay takaful contributions which are apportioned into the participant’s
risk and investment funds on an agreed ratio
B. Investment profit (if any) will be used to pay the performance fee to the takaful
operator.
C. All of the Investment profit will be distributed to the PRF.
D. The Participants’ Risk Fund will not be used for claims, Retakaful and reserve.
28 In the Wakalah Model for Family Takaful, the participants’ contributions will be
apportioned into participants’ Investment Fund (PIF) which is meant for saving, and the
Participants’ Risk Fund (PRF) which is based on the _____________ concept.
A. Gharar
B. Aqad
C. Qard
D. Tabarru’

This document is confidential and for internal training purposes only.

 29 In practice, Takaful combines several Shari’ah compliant contracts which include all of
the following except
A. tabarru’
B. wakalah
C. muḍarabah
D. qard duyun
30 Takaful operator has 3 sources of income. Which of the following is TRUE?
I. wakalah fee
II. profit sharing from the investment return of the takaful fund
III. unclaimed money from beneficiaries
IV. returns on the investment of its shareholders’ fund

A. I and II
B. II and III
C. I, II and III
D. I, II and IV
31 According to IFSA Act 2013, a ‘______________’ is defined as a person who, as an
independent contractor, carries out Takaful and/or Retakaful broking business.
A. financial advisor
B. takaful broker
C. takaful agent
D. Takaful adviser
32 A financial advisor undertakes the following tasks. Select the CORRECT combination
below.
I. analyzing the financial planning needs of a person relating to a takaful product
II. recommending an appropriate takaful product to a person
III. sourcing a Takaful product from a licensed takaful operator for a person
IV. arranging a contracted takaful agent to provide a takaful solution for a person.

A I, II & III
B. II, III & IV
C. I, III & IV
D. All of the above
33 Complete the blank space in the table below.

No Intermediary Represents
1. Takaful agent
2. Takaful broker
3. Financial advisor

A. Takaful Operator, Customer, Takaful Operator

B. Takaful Operator, Customer, Bank
C. Takaful Operator, Customer, Customer
D. None of the above are correct

This document is confidential and for internal training purposes only.

 34 The following are the general duties of an agent. Select ONE of the following
statements which is NOT TRUE.
A. Giving advisory services (related to takaful products) and customer support to the
clients.
B. To instruct and demand the client to submit proposals to the principal as required.
C. To create awareness about takaful products and services.
d. Maintain good rapport with existing and prospective clients.
35 Which ONE of the following is NOT a remedy for the Principal if an agent does not
perform the duties as required by the Principal?
A. Dismiss the agent without notice or compensation in cases of a serious and blatant
breach of duties.
B. Indemnify the agent against the consequences of any unlawful act performed on the
principal’s behalf
C. Sue the agent for damages for specific performance or for breach of contract.
D. Rescind any contract made through the agent where there is a fraud.
36 Some Hospitalisation and Surgical Takaful may be extended to cover the following
EXCEPT
A. Hospital Cash Deposits
B. Overseas travel
C. Outpatient Kidney Dialysis
D. Organ Transplant
37 The objectives of Minimum Standards on Product Disclosure and Transparency in the
Sale of Medical and Health Takaful Plan will cover all of the following EXCEPT
A. Agents should provide sufficient details of the essential features of the Medical and
Health Takaful plan to prospective participants
B. Agents should provide information on the Takaful Operator including the name and
its address
C. Explain the possible implications of switching from one type of Medical and Health
Takaful plan to another or from one provider to another
D. To ensure contribution rates are readjusted on a case-to-case basis for participants
to obtain coverage.
38 Select the STATEMENT below which is NOT TRUE.
A. Hospitalization Income Benefit Takaful Plan provides participants with daily cash
benefit, should the participant be hospitalized.
B. A hospital and surgical takaful plan provide reimbursement of medical expenses
incurred by the certificate owner for medical treatment due to illness, sickness, disease
or injury.
C. The disability income plan aims to provide an income stream to substitute the
workplace income lost as the result of a disabling accident or sickness.
D. Disability Income Takaful does not cover paid sick leave, short-term disability
benefits, and long term disability benefits
39 Third Party Administrators are appointed representatives of the Takaful Operator who
are responsible for managing claims. The functions of third-party administrators will
cover all of the following EXCEPT ________.
A. data maintenance
B. cashless service
C. claims settlement
D. claim dispute mediation

This document is confidential and for internal training purposes only.

 40 Under the Non-Cancellable and Guaranteed Renewable option of Medical and health
Takaful plan, the
A. contribution will not be increased and the operator cannot refuse to renew the
coverage without the consent of the participant.
B. The contribution cannot be increased but the operator can refuse to renew the
coverage.
C. The contribution can be increased and the operator can refuse to renew the
coverage without the consent of the participant.
D. none of the above is true
41 The BNM policy document on Shariah Governance for Islamic financial institutions (IFIs’)
aims to
A. to set out the expectations on Shariah governance for the insurance industry and
IFIs’.
B. strengthen the effectiveness of Shariah governance and reinforce integration of
Shariah considerations in the business and risk strategies of IFIs’.
C. to ensure proper and effective Shariah audit functions for all companies in the
insurance industry.
D. to ensure all insurance and takaful companies are Shariah compliant.
42 “It outlines the parameters that govern the operational requirements relating to the
management of takaful funds and shareholders fund thereby safeguarding the best
interest of the takaful participants.”
This statement refers to the___________.
A. Policy Document on Sharī’ah Governance
B. Life Insurance Framework
C. The Takaful and Islamic Financial Institution Framework.
D. Takaful Operational Framework
43 The Balanced Score Card (BSC) Framework for the life insurance and takaful
intermediaries aims to __________.
A. further strengthen the fair treatment of consumers.
B. further increase the income of agents.
C. further strengthen the fair treatment of life insurance companies and takaful
operator.
D. further strengthen the fair treatment of both intermediaries and consumers.
44 The KPIs’ that are measured and covered under the BSC Framework include the ___.
I. Completion rate of Customer Fact Find (CFF) form
II. Persistency rate
III. Number of substantiated complaints
IV. Educational qualifications and CPD hours.

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

This document is confidential and for internal training purposes only.

 45 The role of the Shariah Committee of a Takaful Operator includes _____.
I. Advising the Board of the Operator and providing all the input to regarding Shariah
matters.
II. Overseeing the Shariah review function to ensure that business operations are
Shariah compliant
III. Determine the Shariah non-compliance risk and take punitive action against the
management for non-compliance.
IV. Working with management to ensure business operations are in accordance with
Shariah principles.

A. I & II
B. I, II & III
C. I, II & IV
D. All of the above are TRUE
46 ____________ is the national trade association of all licensed direct and reinsurance
companies for general insurance in Malaysia.
A. Malaysian Insurance and Takaful Brokers Association (MITBA)
B. Anti-Money Laundering Anti-Terrorism Financing and Proceeds of Unlawful Activities
Act 2001 (AMLA)
C. Persatuan Insurans Am Malaysia (PIAM)
D. Malaysian Takaful Association (MTA)
47 The key objectives of Malaysian Financial Planning Council (MFPC) includes the
following. SELECT the correct combination below.
I. To certify financial planners and uplift their professionalism
II. To enhance the image of the financial planning profession
II. To ensure all the rules and practice standards are enforced in the financial planning
industry
IV. To make laws and enforce the law in the financial planning industry.

A. I & II
B. I, II & III
C. II, III & IV
D. All of the above are TRUE
48 “It serves as an international standard-setting body of regulatory and supervisory
agencies that have vested interest in ensuring the soundness and stability of the Islamic
financial services industry, which is defined broadly to include banking, capital market
and insurance.” This statement refers to _________________.
A. The Islamic Financial Services Board (IFSB)
B. Malaysian Accounting Standards Board (MASB)
C. Shariah Advisory Council (SAC) of Bank Negara Malaysia
D. None of the above is true
49 Which of the followings are the objectives of Life Insurance Association of Malaysia
(LIAM)?
A. To promote public understanding and appreciation for life insurance.
B. Strengthen the market practices of the life insurance industry through self-
regulation.
C. To enhance the professionalism of staff and agents through continuous training and
education.
D. All of the above.

This document is confidential and for internal training purposes only.

 50 It is a body of the Financial Reporting Foundation (FRF) whose functions shall be the
determination and issuance of accounting standards for the preparation of financial
statements required under any law administered by the Securities Commission
Malaysia, Bank Negara Malaysia or the Registrar of Companies. This statement refers to
_____________.
A. The Islamic Financial Services Board (IFSB),
B. Malaysian Accounting Standards Board (MASB)
C. Shariah Advisory Council (SAC) of Bank Negara Malaysia
D. Malaysian Standards Administration Board (MSAB)
51 For a takaful certificate, the takaful contribution will be apportioned into the ______.
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
52 Under the Muḍarabah Model, if the participant survives until maturity ______.
A. the surplus will be wholly distributed to the participants
B. the surplus will be wholly distributed to the Takaful Operator
C. the surplus will be shared between the participant and the Takaful Operator
according to a pre-agreed ratio
D. the surplus will be retained in the fund and never distributed but used for qard
53 The contribution of a takaful plan is calculated based on the following factors
I. mortality
II. expenses
III. rate of investment returns
IV. the tax rate.

A. I, & II
B. I, II & III
C. II, III & IV
D. All of the above
54 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 or debt to any financial institution in the
event of the participant’s death or total and permanently disability.

This document is confidential and for internal training purposes only.

 55 Employee Benefits Schemes is a yearly renewable plan offered to groups of people
under one master certificate. The advantages of participating in such scheme for the
employer are:
I. It portrays a caring image of the employer.
II. It meets the demand for employee benefits requested for by labour unions.
III. It attracts and retain employees.
IV. There are tax reliefs available.

A. I & II only
B. I, II & III only
C. I, II & IV only
D. I, II, III and IV
56 A replacement certificate stamped “Duplicate Certificate” by the Takaful Operator is
______________.
A. recognized as a valid legal document
B. recognized as a valid legal document only if accompanied by a power of attorney
from the participant
C. recognized as a valid legal document only if accompanied by a power of attorney
from the Takaful Operator
D. recognized as a valid legal document only if accompanied by a power of attorney
from the Bank Negara Malaysia
57 __________ is the transfer of all rights and liabilities by one person to another.
A. A gift
B. A grant
C. An assignment
D. A deed
58 Select the STATEMENT below which is NOT TRUE about the partial withdrawal from a
takaful certificate.
A. the withdrawal is made from the Participant’s Account
B. no fee is charged for the withdrawal
C. no interest is charged by the operator for the withdrawal
D. the participant may or may not payback the amount withdrawn
59 The parties to the takaful contract are stated in the ______ of the takaful certificate.
A. Heading
B. Preamble
C. Operative Clause
D. Schedule
60 The privileges and conditions stated in a Family Takaful certificate can be broadly
classified under the following groups. ONE of the options below is FALSE.
A. Those adding to the benefits of the coverage known as privileges
B. Those limiting the scope of coverage known as restrictive conditions
C. Those explaining the nature of the contract.
D. Those highlighting the power and discretion of the Takaful Operator
61 Medical underwriting covers the ________of the risk proposed for takaful.
A. standard hazard
B. physical hazard
C. coverage hazard
D. moral hazard

This document is confidential and for internal training purposes only.

 62 Select the COMBINATION below which is CORRECT about Underwriting
I. Underwriting is the process of evaluating, classifying and selecting the risks.
II. Underwriting determines the appropriate rates and terms.
III. The person who undertakes the underwriting is called an underwriter.
IV. The underwriter will carry out the task by following the underwriting guidelines of
the Takaful Operator.

A. I & II only
B. I, II & III only
C. II, III & IV only
D. All of the above are TRUE
63 The Takaful Operator may still offer a coverage to the proposer subject to conditions
such as
I. Charging an extra contribution
II. Modifying the benefits
III. Declining the risk
IV. Imposing exclusions

A. I & II only
B. I, II & III only
C. II, III & IV only
D. All of the above are TRUE
64 If there are medical histories indicated in the proposal form, the underwriter may ask
for further information to review the medical histories of any previous conditions of the
proposer to determine the
I. Possibility of recurrence as some diseases have a tendency to recur.
II. Effect of medical conditions (based on the history) on the applicant’s general health.
III. Possible complications that may develop at a later date.
IV. Normal progression of any impairment that shows a potential higher future
incidence of the impairment.

A. I & II only
B. I, II & III only
C. II, III & IV only
D. All of the above are TRUE
65 Age is an important consideration in underwriting due to its relationship with
I. mortality
II. morbidity
III. financial status
IV. economic position

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

This document is confidential and for internal training purposes only.

 66 A claim can arise under any one of the following situations for a Takaful certificate.
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.

A. I, II & III only

B. I, III and IV only
C. II, III & IV only
D. III & IV only
67 For a death claim, the claimant has to provide the Takaful Operator with documentary
evidence which establishes the death of the participant. Any one of the following
documents will suffice as proof of death EXCEPT…………….
A. The family medical records
B. A death certificate
C. A coroner’s report
D. An order pronouncing a statutory presumption of death
68 Takaful Operator will review all the evidence submitted under each type of claim and
make a decision to pay or repudiate the claim. The reasons for repudiating liability may
be as follows:
I. Non-existence of loss as reported
II. The loss or damage was due to the peril that is covered under the certificate;
III. The loss or damage is within the scope of an exclusion of the certificate;
IV. The certificate has been rendered void as a result of a breach in condition.

A. I, II & III only

B. I, III and IV only
C. II, III & IV only
D. All of the above are TRUE.
69 One of the following is NOT a claim settlement option which is _____________.
A. Arbitration
B. Litigation
C. Mediation
D. Conciliation
70 One of the following statements is NOT true about arbitration in claims settlement.
A. Arbitration takes place out of court.
B. The two sides select an impartial arbitrator and agree in advance to comply with the
arbitrator's award.
C. Both parties will participate in a hearing at which both sides can present their
respective evidence and testimony.
D. The arbitrator's decision is final, and cannot be challenged in a court of law.
71 The gross return to the investor from an investment is _____.
A. the return before all fees, expenses, and taxes
B. the return before all administrative fees only
C. the return after taxes only
D. the return net of all fees, expenses, and taxes

This document is confidential and for internal training purposes only.

 72 Some of the common investment objectives include___________.
I. preserving the capital
II. diversification of asset classes for risk reduction
III. low return rates through save investment portfolios
IV. maximize returns through investment in a broad spectrum of securities

A. I, II & III only

B. I, III and IV only
C. II, III & IV only
D. All of the above are TRUE
73 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-return trade-offs
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
74 Investment performance is the return on an investment portfolio and it is measured
__________.
A. over a specific period of time and in a specific currency.
B. over a long period of time
C. until return rates are positive
D. until all risk in the investment is extinguished
75 It is important to note that in the consideration of an investment risk, there are other
risks that can impact the return on the investment. Select the COMBINATION below
that is CORRECT…
I. Market Risk and Liquidity Risk
II. Technology Risk and Infrastructure Risk
III. Currency Risk and Country Risk
IV. Profit Rate Risk and Non–Compliance Risk

A. I, II & III only

B. I, III and IV only
C. II, III & IV only
D. All of the above are TRUE
76 ___________ refers to all types of liquid instrument with minimal or no risk. Select the
CORRECT OPTION below.
A. Shares
B. Cash and deposit
C. Diversified investments
D. Special investments

This document is confidential and for internal training purposes only.

 77 The Special Investment Account (SIA) in a bank will provide ___________.
A. profit sharing investment that invest in specific income producing assets.
B. the investor to access very selective private sector bonds to earn a maximum rate of
return.
C. the bank with full discretion to invest in various instruments to generate maximum
profit
D. the investor access to very special government investment opportunities that
provide high returns
78 The difference between preference shares and ordinary shares is _______.
A. preference shares pays fixed dividends but dividends for ordinary shareholders are
paid biannually.
B. preference shareholders are paid dividends after the ordinary shareholders have
been paid.
C. preference shares have no voting rights but ordinary shareholders have voting rights.
D. The dividends of preferred shares are often higher than the dividends of ordinary
shares
79 Select the STATEMENTS below that are TRUE with regard to Islamic REITs.
I. Investors can also invest in real estate (I-REITs).
II. I-REITs can be publicly or privately held.
II. An Islamic REIT is a real estate investment trust that invests primarily in Shariah
compliant income-producing real estate.
IV. It uses lease financing (ijarah) in lieu of an outright purchase of property.

A. I, II & III
B. II, III & IV
C. I, II & IV
D. All of the above are TRUE
80 All of the following are requirements that must be met by the Islamic Commodity Funds
to comply with Shariah principles EXCEPT ____________.
A. The commodity must be owned by the seller at the time of sale
B. Short selling is not permitted but forward sales are allowed
C. Commodity traded must be halal i.e. permissible
D. Seller need not have physical possession of the commodity to be sold
81 The unique features of the Investment-Linked Takaful (ILT) include all of the following
EXCEPT
A. Flexibility to choose the level of protection and investment
B. Option to switch the current investment fund to other types of investment funds
C. Option to redeem part of the units once the certificate is in force for more than 5
years
D. Option to vary the amount of contribution according to changing financial
circumstances
82 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).

This document is confidential and for internal training purposes only.

 83 The term ‘top-up’ in an investment linked takaful plan can be explained as follows.
A. This is an additional contribution to the participants account to increase the sum
covered.
B. Top-ups are meant to increase the investment portion to generate more return.
C. The top up is to fund the Takaful Operator who is running out of money.
D. The top up is amount granted to the participant for maintaining the investment for a
minimum period of 3 years
84 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 in Investments are at full discretion of the
line with his investment strategy. Takaful Operator.
B The PIF is maintained in the form of The PIF is maintained in the form of
units (unitized). currency value.
C The participants cannot change Contributions are fixed and usually level
contribution payments, or take throughout the period of the certificate.
contribution holidays, or add
contribution top-ups, etc.
D All fees and charges are fully disclosed Fees and charges are fixed throughout
to the participants the period of Takaful

85 Select the STATEMENT below which is NOT TRUE about Switching under an investment
linked takaful plan.
A. Switching between funds may be offered free of charge by the Operator
B. Switching between funds may be offered free of charge for a limited number of
switches within a given period (normally a year) and charges imposed for subsequent
switches.
C. A specific charge is incurred for every switch
D. According to the Bank Negara rules switching is only allowed once a year to
safeguard the interest of the participant.
86 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
87 For the accumulation units under an investment linked fund, the characteristics will
include ONE of the following
A. the investment income will be utilized to purchase additional units.
B. the gross fund will is distributed as units to the certificate owners.
C. the net asset value of the fund will increase over the long term.
D. none of the above is TRUE.

This document is confidential and for internal training purposes only.

 88 In an investment linked takaful plan, the protection coverage is provided by
contributing part of the contribution (tabarru’) via
A. the shareholders fund
B. the surplus from the investment funds
C. redemption of units from the investment funds
D. purchase of additional units from the market
89 Upon maturity of the investment linked takaful certificate, all units of the PIF will be
redeemed at
A. the bid price of the relevant funds
B. the price set by Bank Negara Malaysia
C. the price fixed by the Takaful Operator
D. the price fixed by the fund management company
90 Takaful Operators are required to provide to each participant a report on the
performance of each investment-linked fund in which the participant has units at least
A. once a month
B. every half year
C. once a year
D. only at the time when the contributions are invested in the fund.
91 The key factor in establishing and defining the client-agent relationship is __________.
A. Affordability
B. Trust
C. Relationship
D. Personality
92 The main aim of the Customer Fact Find Form is to _____________.
A. know all information with regard to the client lifestyle.
B. know all facts and information with regard to the client’s family history.
C. obtain all the relevant information about the client to ascertain the client’s financial
situation and establish the client’s needs.
D. obtain all relevant information about the client to ascertain the clients lifestyle
behaviour
93 During the monitoring stage after a needs based customer solution has been placed,
the agent may undertake one of the following actions _________.
A. the agent may tell the client to undertake the responsibility of monitoring the funds
B. the agent may tell the customer to keep on investing in funds to obtain high returns
C. the agent may make the necessary switching and adjustments to ensure that the
client gets the best returns from the certificate
D. the agent must advice the client to invest in equities to ensure the stability of the
investments
94 The Customer Fact Finding Form addresses all of the following areas EXCEPT
A. Customer’s Personal and Dependent(s) details
B. Life and Financial Priorities and Goals
C. Family history and Risk Profile
D. Net-Worth Analysis

This document is confidential and for internal training purposes only.

 95 Monitoring the recommendation(s) that have been implemented is a very important
function in an agent’s scope of work. Select the COMBINATION below that is true.
I. Regular monitoring must be performed and the client should be kept updated on the
progress of the plan by the agent.
II. Agents must commit themselves to undertake a certificate review on a half yearly or
yearly basis, or when there is a change in the financial circumstances of the client.
III. The agent must explain the fund performance and ensure that the growth of the
funds is in tandem with the initial objectives of the investment.
IV. The agent must assist the client to make the necessary switching and adjustments,
when necessary, to ensure that the client gets the best returns from the certificate.

A. I, II & III
B. II, III & IV
C. I, III & IV
D. All of the above are TRUE
96 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 general takaful business.
97 Some of the Seven Principles of the guidelines are listed below. Select the CORRECT
combination below.
I. To ensure confidentiality of communication and transactions between the takaful
operator, its participant and family.
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
98 When explaining the contract, the intermediary _____________.
I. explain all the essential provisions of the contract or contracts to the prospect.
II. draw attention to any restriction(s) including exclusions under the certificate.
III. draw attention to the long-term nature of the certificate and to the consequence of
early discontinuance and/or surrender.
IV. shall use the whole illustration when discussing with the prospect, and shall not add
or select only the most favourable aspects of the illustration.

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

This document is confidential and for internal training purposes only.

 99 The disadvantages to the client caused by the Replacement of a Certificate are
_________. 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
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

Answers:

1. B 11. D 21. C 31. B 41. B 51. A 61. B 71. A 81. C 91. B

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

This document is confidential and for internal training purposes only.