TBE C

MOCK EXAM QUESTIONS_SET 1/2016

1. Which of the following are the characteristics of Family Takaful Plan?

I. Long-Term Contracts with Usually Level Contribution
II. Risk to be Covered Increases with Time
III. Termination of Contract with Payment of A Claim
IV. Unilateral Contracts

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

2. The contribution is calculated based on many factors.

I. Mortality
II. Expenses
III. Rate of investment returns
IV. Tax

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

3. ____________ will be used to fulfill the obligation of mutual help, should any of the participants face a
misfortune arising from death or permanent disability.
A. Participant Account
B. Shareholder’s Account
C. Participant Special Account
D. Waqf Account

4. The following risks can be covered by Family Takaful, EXCEPT:

A. Premature death
B. Total permanent disability
C. Old age
D. Suicide

5. Which are the following are CORRECT about Family Takaful Plan?
I. Family Takaful contract is an unilateral contract
II. The existence of permissible interest is a prerequisite for a Takaful contract
III. Termination of contract with payment of aclaim
IV. Risk to be covered increases with time

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

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MOCK EXAM QUESTIONS_SET 1/2016

6. The personal tax relief for Child Education Takaful Plan is up to ...................... per year.
A. RM6,000
B. RM3,000
C. RM2,500
D. RM5,000

7. The maturity benefit of Saving Takaful Plan consist of _____________

I. Accumulated amount in the Participant’s Account (PA)
II. A share of the profit from Shareholders’ Fund
III. A share of the net surplus from the Participants’ Special Account (PSA)
IV. A share of the net surplus from the Contingency Fund

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

8. ________ is used when the participant wants to instruct the Takaful operator to pay the certificate
proceeds to a third party.
A. Assignment
B. Hibah
C. Wakalah
D. Mudharabah

9. Which of the following methods are generally used for non-payment provisions:
I. Paid-Up Takaful
II. Automatic Advance from Participant’s Account
III. Reinstatement Condition
IV. Extended Term Takaful

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

10. What is the duration of free look/cooling off period?

A. 7 days from the delivery of certificate
B. 15 days from the delivery of certificate
C. 15 days from the first payment of contribution
D. 15 days from the application

11. Which of the following factors will be analysed by the underwriter when processing the Family Takaful
application?
I. Personal and family medical history
II. Height
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MOCK EXAM QUESTIONS_SET 1/2016

III. Weight
IV. Lifestyle

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

12. Which of the following is the definition of surplus of the fund?

A. The difference between the value placed on the assets and the value of the liabilities
B. The profit of the risk fund
C. The difference between the income and expenses of the risk fund
D. The difference of value between beginning and end of year

13. Which of the following is the treatment of surplus?

I. Participants’ Account (for savings and investments)
II. Participants’ Special Account (Risk Fund)
III. Bank Account of the participants
IV. Shareholders fund

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

14. What are the advantages of investing in fixed income securities?

I. Besides the principal, it generates fixed income
II. It has fixed interest rate
III. The fixed income securities issued by government has lower risk
IV. It is the most secure bond issued by corporate sector

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

15. The participant shall be paid the entire amount accumulated in ______________ in the event of a
surrender of the Takaful certificate.
A. Participant’s Special Account
B. Shareholder’s Fund
C. Participant’s Account
D. Contingency Fund

16. Which of the following is the factor that determines the contributions charged for Family Takaful?
I. Age and gender of the insured
II. Current state of health of the insured
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MOCK EXAM QUESTIONS_SET 1/2016

III. Sum covered

IV. Duration of the certificate

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

17. The following are the suitable investment for short term fund, EXCEPT:
A. Bank deposit
B. Sukuk
C. Treasury securities
D. Equity

18. Which of the following is NOT the main consideration of the individual in making investment
decisions?
A. Individualattitudestowards risk
B. Availability offunds
C. Service tax
D. Performance of individual employers

19. Which is the following is the objective of investment?

A. A financial goal that helps the investor to determine the type of investments that he wants to make.
B. The tenure of the investment.
C. The type of investment portfolio.
D. The performance of the investment.

20. Which of the following are the factors influencing the choice of savings?
I. Whether immediate withdrawal allowed
II. Money available for investment
III. Current market conditions
IV. How long the money can be saved in the account

A. I, II & III only

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

21. Which of the following factors may affect the decision to save money in the bank?
I. Penalty for early withdrawal (before maturity)
II. Available funds for investment
III. Current market conditions
IV. Whether emergency withdrawal allowed

A. I & II only

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MOCK EXAM QUESTIONS_SET 1/2016

B. I, II & III only

C. I, II & IV only
D. All of the above

22. Following are the advantages of investing in Unit Trust, EXCEPT:

A. Highly qualified portfolio manager specialists make investment decisions, and manage the unit trusts.
B. Unit trusts provide diversification for smaller investors who may not otherwise have access to a broad
spread of investments.
C. The volatility in the investment, as prices fluctuate daily according to market movements, may not suit all
investors’ needs.
D. Unit trusts are a very convenient and low cost way of investing in markets which you otherwise would
have found difficult to access.

23. Which of the following is the advantage of investing in corporate sukuk?

A. High return.
B. Companies can and do go bankrupt, and if they do, sukuk will lose value and possibly even become
worthless.

C. Long-term sukuk will have investors’ money tied up in low yielding sukuk.

D. Unlike shares, sukuk does not offer the possibility of high long-term returns.

24. Which of the following are the advantages of investing in share?

I. Share has the potential for delivering very large gains, unlike sukuk, general investment account or some
other alternatives.
II. Share prices tend to be volatile. Prices can be erratic, rising and declining quickly.
III. The potential loss from shares purchased with cash is limited to the total amount of the initial
investment.
IV. Most stocks are very liquid; in other words, they can be bought and sold quickly at a fair price.

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

25. Aqad is ___________.

A. the parties to the contract
B. legal relationship created by the conjunction of two declarations from which legal consequences
transpire with regard to the subject matter
C. the subject matter of the contract
D. the consideration of the contract

26. Which of the following statements are CORRECT about Investment Linked Takaful Plan?
I. ILTP has a multiple purpose i.e. it can be used either as an investment, regular saving, protection against
total permanent disability and death or health Takaful.

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MOCK EXAM QUESTIONS_SET 1/2016

II. ILTP’s exposure towards equity investment is higher compared to the traditional family Takaful.
III. Investment risk is borne by the certificate owner unlike traditional family Takaful product where
investment risk is borne by the Takaful operator.
IV. The net asset value of the fund is subject to the performance of the investment.

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

27. What is the objective of a Growth Fund?

A. To provide maximum income.
B. To provide both capital appreciation and income.
C. To provide protection.
D. To provide capital appreciation.

28. Which of the following is the appropriate investment vehicle for a risk taker that wants to have a
specific amount of money in 10 years?
I. Unit trust and Investment-Linked product that is heavy into equities
II. A fund that specifically targets on high growth.
III. A fund that is mainly invested in government securities
IV. A bank deposit and cash fund

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

29. What is the definition of “dollar cost averaging”?

A. Regular investment with whatever small amount one can invest, without worrying to time the market.
B. Time the market and invest when the price of the fund is low.
C. Investor to make a single investment.
D. Time the market and invest when the price of the fund is high.

30. Which of the following is the benefit of dollar cost averaging?

A. The investor will invest at the lower fund price.
B. It will spread the cost basis out over several years, providing insulation against changes in market price.
C. The investor will get discount from the Takaful operator.
D. The investor will invest at the higher fund price.

31. Which of the following statement is CORRECT about market risk?

A. Market risk will affect the Shariah status of the asset.

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MOCK EXAM QUESTIONS_SET 1/2016

B. Market risk will affect the entire marketplace hence may affect the performance of the investment.
C. Market risk will make the Takaful operator to breach the compliance.
D. Market risk will affect the repayment capability of the borrower.

32. Following are the method to mitigate liquidity risk, EXCEPT:

I. Proper asset allocation to a comfortable level in relation to the security’s risk-return profile can be made
for each security
II. Appointment of experienced fund manager
III. Diversification of fund
IV. Appointment of experienced Shariah advisor

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

33. Which of the following is the minimum death benefit for single contribution investment linked
Takaful?
A. RM3,000 or 115% of the single contribution, whichever is higher
B. RM5,000 or 125% of the single contribution, whichever is lower
C. RM5,000 or 125% of the single contributions, whichever is higher
D. RM7,500 or 125% of the single contribution, whichever is higher

34. ___________ is the minimum death benefit for single contribution investment linked Takaful for older
ages and substandard lives.
A. RM 5,000 or 105% of the single contributions, whichever is higher
B. RM5,000 or 125% of the single contributions, whichever is higher
C. RM3,000 or 115% of the single contribution, whichever is higher
D. RM5,000 or 125% of the single contribution, whichever is lower

35. Which of the following are CORRECT about sales materials and illustrations?
I. Meet the minimum content and other disclosure requirements specified in the Code and Guidelines on
Family Takaful Products
II. Meet the minimum content specified in the MTA Circular
III. Shall comply with the format provided in the Guidelines on Investment Linked Takaful
IV. Meet the minimum requirements under the Securities Commission’s Circular

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

36. Which of the following are correct about the latest Guideline on Investment Linked Takaful Business?

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MOCK EXAM QUESTIONS_SET 1/2016

I. Takaful operator shall not carry out Investment Linked Takaful business except with the prior written
approval from Bank Negara Malaysia and subject to such conditions as the Bank may specify
II. Takaful operator must get the approval from Malaysia Takaful Association on the investment-linked
product brochure
III. Takaful operators shall establish and maintain one or more separate investment-linked funds for the
purposes of administering investment linked Takaful business
IV. Takaful operator can launch the investment-linked fund first and then notify Bank Negara Malaysia.

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

37. Which of the following is the process when the agent effectively engaging the client so that they can
openly discuss their financial needs?
A. Gathering all relevant financial data, including goals.
B. Establishing and defining the client-agent relationship.
C. Analyzing and evaluating the client financial status.
D. Developing and presenting recommendations.

38. What is the name of the process when the agent analyzes the client’s information to assess the
current situation and determine what is required to meet the client’s goals?
A. Establishing and defining the client-agent relationship.
B. Analyzing and evaluating the client financial status.
C. Gathering all relevant financial data, including goals.
D. Developing and presenting recommendations.

39.What is the importance of identifying and establishing customer’s needs?

A. To project on air of professionalism to the client
B. To ensure that the agent will get good referrals
C. To ensure that the client is comfortable and knows the important areas concerning the plan that he is
going to participate
D. To ensure that the agent gets to sell the plan as fast as possible

40. Following are the stages involved in providing effective advice to clients of investment-linked Takaful,
EXCEPT:

A. Make a fact-finding
B. Qualifications in marketing
C. Assess and meet customer needs
D. Provide recommendations to clients

41. The Code of Ethics and Conduct applies to the following:

I. Individual agent
II. Corporate agent
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MOCK EXAM QUESTIONS_SET 1/2016

III. Employee of Takaful operator

IV. Broker

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

42. What is the maximum limit of total commission payable to the agency based on the Bank Negara
Malaysia’s Guidelines on Operating Costs of Family Takaful Business?
A. 110%
B. 41%
C. 171%
D. 161%

43. Which of the following are principles laid out in the Guidelines on the Code of Ethics and Conduct?
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 only
B. I, II&III only
C. II, III&IV only
D. All of the above

44. Which of the following statements are CORRECT about Replacement of Certificate?

I. Any replacement of the same type of certificate will normally be at a higher contribution rate
based upon the participant’s then attained age
II. Since the initial costs of Family Takaful certificates are charged against the cash value in the
earlier certificate years, the replacement of an old certificate with a new one results in the
participant sustaining the burden of these costs twice
III. The suicide clause and the incontestable clause (if any) starts all over again with the new
certificate but which would have been paid / eligible under the certificate which was replaced
IV. Every time a participant moves the basic coverage from one Takaful operator to another, the
participant’s certificate must commence again the qualifying period (usually two or three years)
before the new contract will become eligible for a surrender value and come under the non-
forfeiture mode

A. I, II & III only

B. II, III & IV only
C. I, II & V only
D. All of the above
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MOCK EXAM QUESTIONS_SET 1/2016

45.Following statement is true about insurable interest, EXCEPT:

A. A parent has an Insurable Interest in the life of a child above the age of majority
B. A creditor has an Insurable Interest in the life of a debtor to the extent of the debt
C. An employer has an Insurable Interest in the lives of key personnel, such as a managing director or a
manager
D. A partner in a business has an Insurable Interest in his other partner(s), especially if there is an
agreement to buy out the share of a deceased partner

46. Which of the following is CORRECT about Mortgage Reducing Term Takaful Plan?
A. Coverage to pay off outstanding financing facility/debt amount owing to any institution in the event of
participant’s dread disease.
B. Guaranteed benefit to settle the mortgage balance based on the table of reducing sum covered plus a
consolation benefit, payable upon death or permanent disablement (within accepted terms)
C. Financial compensation in the event of death or total permanent disablement to the participant before
the certificate matures.
D. Protection and long-term savings to finance a child’s higher education expenses.

47. Which of the following factors will be scrutinized under Financial Underwriting?
I. Whether the participant maintains multiple insurance policies/Takaful certificates with other
insurers/operators
II. Existence of insurable interest
III. Whether other Takaful operators have turned down the proposer’s application for Takaful
coverage, and if so, the reasons for this Whether the amount of Takaful applied for
commensurate with the proposer’s financial standing
IV. Existence of Speculative Risk

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

48. Which of the following is the function of Capital Adequacy Ratio (CAR)?
A. An indicator of the insurer’s profitability
B. An indicator of the status of the insurer’s risk fund
C. An indicator of the insurer’s financial resilience and will be an input to determine the appropriate
progressive supervisory interventions on the insurer by Bank Negara Malaysia.
D. An indicator on the return on investment

49. What is an investment-linked certificate?

A. A participating whole life certificate
B. A capital and returns guaranteed certificate
C. An endowment certificate only
D. A plan that offers clients’ coverage and investment returns

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MOCK EXAM QUESTIONS_SET 1/2016

50. Certificate fee payable by an investment-linked Family Takaful certificate owner is to cover
A. The mortality costs of the investment- linked Family Takaful certificate
B. The administrative expenses of setting up the investment- linked Family Takaful certificate
C. The handling charges by professional investment managers
D. The price for each unit bought under the investment- linked Family Takaful Certificate

51. The investment returns under an investment-linked Family Takaful certificate EXCEPT
A. Are not guaranteed
B. Are assured
C. Are linked to the performance of the investment fund managed by the life office
D. Fluctuate according to the rise and fall of market prices

52. Surrender charges under the investment-linked Family Takaful Certificate

A. Are deducted from the value of units at surrender
B. Are deducted from the value of units at the commencement of the policies
C. Are applicable to policies with not uniform allocation
D. Represent initial expenses which have already been incurred and recovered

53. Under the investment- linked Family Takaful Certificate, if a certificate owner pays a regular payment
to the Takaful company, this is normally for
A. Regular contribution plans
B. Annual policy plans with renewals
C. Top-up policy plans
D. Single contribution plans

54. Which one of the following best describes the certificate benefits of investment- linked certificate?
A. The certificate benefits are guaranteed
B. The certificate benefits are payable only on death or disability
C. The certificate benefits will depend on the long-term of the life office
D. The certificate benefits are directly linked to the investment performance of the underlying assets

55. The switching facility under investment-linked life insurance policies is very useful for the purpose of
A. Financial planning by the certificate owners
B. Profit planning by the life officers
C. Sales planning by the fund managers
D. A fixed amount throughout the life of the certificate

56. Under the dual pricing method of single contribution certificate,

A. There is only one price quoted whether the certificate owner is buying or selling his units
B. The bid price is always higher than the office price
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MOCK EXAM QUESTIONS_SET 1/2016

C. The certificate owner buys the units at the offer price and sell the units at the bid price
D. The certificate owner buys the units at the life office’s buying price and sells the units at the units at
the life office’s selling price

57. What must an agent do to ensure the client is given proper advice on investment?
A. Ensure that there is a right combination of objectives and make sure proper risk analysis is done
B. Show the wide selection of investment for the client to choose form
C. Motivate the client to borrow money to invest in guaranteed investment vehicles
D. Ensure that the advice is advantageous to the agent and the insurance company

58. The first investment-linked Family Takaful plan was introduced by which company in Malaysia?
A. Mayban Life Assurance Berhad
B. Syarikat Takaful Malaysia Berhad
C. Berjaya Prudential Assurance Berhad
D. Malaysia Assurance Alliance Berhad

59. Sukuk have the following characteristics EXCEPT:

A. They are issued by pooled funds
B. They adhere to strict syariah principles
C. They can be guaranteed or not by their originators
D. They can only be bought by banks and financial institutions

60. This investment is one of the methods used by government to borrow money from the public. It is a
short term funding vehicle issued by Central Bank and it is also the safest type of investment which
carries no risk except the country is politically unstable. This investment instrument is called
_______________
A. Bank Account
B. Treasury Bill
C. Government Bond
D. Debenture Stock

61. Why is important for agents to established a good relationship with their clients?
A. To ensure that the client is well taken care of and will assists him in providing add on business and
quality referrals
B. To establish himself as a very good agent in the eyes of the company
C. To be able to attract more people to join him in carrying out Takaful business
D. To ensure that no other agents will approach his client to sell Family Takaful products

62. The public generally invest their money to provide

I. Funds for a company
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MOCK EXAM QUESTIONS_SET 1/2016

II. Comfortable standard of living

III. Income in retirement
IV. Funds for the education and upbringing of their children

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

63. Important considerations of an individual’s decision in investment include __________

I. The individuals attitude towards risk
II. The accessibility of fund
III. The taxation liability
IV. The individual’s employer performance

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

64. The factors that may influence the choice of deposits in a bank include ____________
I. Fund available for investment
II. The length of time the funds can be in the account
III. Whether emergency withdrawal are likely
IV. The age of depositor

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

65. Family Takaful can be described as:

I. A means of alleviating of the financial distress that death may bring
II. A means of spending and divesting when death occurs
III. A pool of fund into which a large numbers of policy owners jointly contribute in relation to their
risk exposures
IV. A contract dependent in human life

A. I, II & III
B. I, II & IV
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MOCK EXAM QUESTIONS_SET 1/2016

C. I, III & IV
D. II, III & IV

66. The phrase “Top-Up” in Investment- Linked Family Takaful means:

A. The certificate owners pay further contribution to purchase additional units of the investment-linked
fund which will be added to the existing units in the policy owner’s account
B. The life office maintain reserves to level out short term fluctuation in the value of Investment-Linked
fund
C. When the Investment- Linked fund value increases, the value of the fund will also increase
D. The policy owner can change his investment fund to another fund which he believes to have great
opportunities for higher return

67. The benefits of investing in Investment Linked funds

I. It offers the certificate owner an access to a “pooled” or “diversified portfolio” of investment
II. Investment- Linked products have simple design with clear structure which caters separately for
investment and Takaful protection
III. Certificate owners can access to the Investment-Linked fund managed by professional fund
manager with unproven track record
IV. Certificate owner can change the level of his contribution payment and add single contribution
top-ups

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

68. What are the stages involved in providing affective advice to investment- linked Family Takaful
customers?
I. Conducting the fact finding
II. Marketing qualification
III. Assessing and satisfying customers
IV. Making recommendation to customers

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

69. To make sound investments, an investor should understand key fundamentals and considerations
about investment which include
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MOCK EXAM QUESTIONS_SET 1/2016

I. Investment objectives only

II. Availability of funds only
III. Investment objectives, funds available, risk or security, investment horizon, accessibility of funds,
taxation treatment, performance of the investment and diversification
IV. The investor’s occupation only

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

70. Which combinations are Fixed Income Securities?

A. Ordinary shares and government bonds
B. Annuities and treasury bills
C. Corporate bonds and preference shares
D. Unit trusts and corporate bonds

71. Which statement regarding an investment-linked Takaful plan is incorrect?

A. An investment- linked Takaful plan is a Family Takaful plan that combines investment and protection
B. There is no exposure to investment risk in an investment- linked Takaful plan
C. There is flexibility to choose your level of protection and investment
D. Contribution payments are usually in a lump-sum or regular basis such as monthly, quarterly, half-
yearly, annually

72. What are the factors that influence the prices of shares?
I. The country’s overall economy
II. The general level of interest rates
III. Inflation rate
IV. The staff’s performance
V. The company’s earnings and business performance

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

73. What do you need to consider before putting your money into an investment- linked Takaful plan?
A. Risk involved and amount of protection
B. Amount of investment
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MOCK EXAM QUESTIONS_SET 1/2016

C. Choice of single or regular contribution and types of funds

D. All of the above

74. The objective of satisfying customer’s need profitably can be achieved by an agent through
____________
I. The giving of freebies to the customers
II. Extensive investment training by the company
III. The use of sales plan, where sales goals, strategies and objectives are coordinated with market
analysis, segmentation and targeting
IV. The giving of monetary assistance and discount to the customers

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

75. Which are the following are the characteristics of Family Takaful Plan?
I. Long term contracts with usually level
II. Permissible Interest
III. Termination of contract with payment of claim
IV. Indemnity

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

76. A Takaful Operators offers a certificate on the basis of a _________________

A. Claim Form
B. Sales Illustration
C. Proposal Form
D. Renewal Notice

77. Takaful Underwriting is defined as a process of _____________

A. developing the Takaful products
B. marketing the Takaful products
C. issuance Takaful certificates
D. classification, rating and selection of risk

78. In Takaful, the main function of the Participant’s Account is

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MOCK EXAM QUESTIONS_SET 1/2016

A. Risk contribution
B. Saving only
C. Investment only
D. Saving and investment

79. Before a contract can be considered valid, an offer must be matched with _____________
A. Acknowledgement
B. Consideration
C. Acceptance
D. Conditions

80. For mortality only, male experience ____________ rates, and accordingly, male are charged
____________ contribution.
A. Lower, Lower
B. Higher, Higher
C. Lower, Higher
D. Higher, Lower

81. The underwriting decision can be classified under;

A. Standard issue and substandard issue
B. Standard issue and decline
C. Standard issue, decline and sub-standard issue
D. Standard issue, deferred sub- standard issue

82. A health Takaful certificate is automatically terminated upon the earliest happening of the following
events EXCEPT
A. On the death of covered person
B. If the lifetime limit paid under the certificate is exhausted
C. On the policy anniversary immediately following the insured’s maximum eligibility age
D. On the diagnosis that the insured person has contracted a dread disease

83. The method used by medical and health Takaful underwriters to address sub-standard risks are;
A. Exclusion, extra declaration and change the plan
B. Exclusion, extra premium and change benefits
C. Elimination period, change benefits and standard issuance
D. Change of risk, exclusion endorsements and postponement

84. Which of the following factor is not required by the underwriter for the risk selection process?
A. Medical Factor
B. Fear Factor
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MOCK EXAM QUESTIONS_SET 1/2016

C. Financial Factor
D. Health Factor

85. Name, age, sex occupation and address of the person covered are contained in:
A. The preamble
B. The schedule
C. The heading
D. Exclusion

86. Under Malaysia tax regulations, a deduction of up to maximum of RM3000 in premium paid for
education, ______________ Takaful is allowable.
A. Or Life
B. Or Medical
C. Health or Life
D. Health or Personal Accident

87. Restrictions on the scope of the health Takaful coverage are known as
A. Exclusion
B. Conditions
C. The operative clause
D. The schedule of benefits

88. Which of the following section of the Takaful contract contain name and the address of the Takaful
Operator?
A. Preamble
B. Attestation
C. Proviso
D. Heading

89. Which of the section under Takaful contract include the insured’s name, address, sum insured and
maturity period?
A. The schedule
B. The proviso
C. The preamble
D. Condition and Privileges

90. Family Takaful can be arranged to provide cover against the following forms of risk;
I. Fire
II. Premature Death
III. Sickness or Disability
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MOCK EXAM QUESTIONS_SET 1/2016

IV. Continuous stream of income during retirement (old age)

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

91. Which of the following is the correct description of an investment- linked Family Takaful Certificate?
A. A participating certificate offering lifetime coverage
B. A capital guaranteed certificate
C. An endowment certificate which provides minimum returns
D. A certificate offering protection while also investing in funds which form the basis for returns to the
certificate owner

92. The benefits of an investment- linked certificate are:

I. It provides access to a diversified investment portfolio
II. It offers flexibilities
III. Fixed nominal charges are levied on the certificate
IV. The Takaful Operator insulates the policy owner against market risks

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

93. People generally want to invest

I. To lead a comfortable lifestyle
II. To be comfortable during retirement
III. To amass great wealth
IV. To provide adequate funding for their children’s education and their upbringing

A. II, III and IV

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

94. Malaysian Treasury Bills are debt instruments that are considered safe because
I. They are issued by the Government of Malaysia
II. They are short term instrument
III. They are guaranteed by the World Bank
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MOCK EXAM QUESTIONS_SET 1/2016

IV. Their tenure is normally 12 months

A. I, II, III and IV

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

95. Scope of coverage that covered by Family Takaful Plan are;

I. Surrender Plan
II. Premature Death
III. Total and Permanent Disability
IV. Old Age

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

96. Which of the following are types of Family Takaful Riders?

I. Critical Illness
II. Waiver of Contribution
III. Group Credit Takaful
IV. Group Medical and Health Scheme

A. II and III only

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

97. Failure to furnish proof within the time provided shall not invalidate any claim if;
A. The claimant can prove that the delay is due to mistake by other party such as hospital
B. The claimant to submit letter from hospital to support their claim
C. The claimant can show that it is not been reasonably possible to furnish such proof during the
stipulated time and such proof is furnished as soon as it was reasonably possible
D. The claimant to get letter from the Third Party Administrator (TPA)

98. The ‘grace period’ is _______________

A. A period of time after the maturity date during which a policy remains in force without penalty even
though the premium due has not been paid

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MOCK EXAM QUESTIONS_SET 1/2016

B. A period of time after the premium due date during which a life policy remains in force without
penalty even though the premium due has not been paid
C. A period of time in which an insurance policy goes into effect once the initial premium is paid
D. A period of time which a policyholder could lodge a complaint with the Director General of Insurance

99. Total Permanent Disability means ______________

A. The life assured’s inability to work effectively for a period of 6 months to a year
B. The life assured losses sight in one eye and stutters when speaking
C. The life assured is completely unable to engage in any occupation and to perform any work for
remuneration or profit due to bodily injury or disease or illness
D. All of the above

100. A situation where more sub- standard risks are accepted for insurance resulting in a less favorable
underwriting result is known as
A. Anti reaction
B. Contradiction
C. Anti rejection
D. Anti selection

Answers:

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

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MOCK EXAM QUESTIONS_SET 1/2016

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

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