PART A – BASIC

TBE REVISION
27TH OCTOBER 2018
CHAPTERS
1. Introduction to Shariah and Muamalat
2. Concept of Risk
3. Introduction to Takaful
4. Comparison Between Takaful and Insurance
5. Principles and Business Models of Takaful
6. Development and Supervision of The Takaful Industry in Malaysia
7. Takaful Intermediaries
8. Introduction to Medical and Health Takaful
9. Medical and Health Takaful: Types of Plans
10. Medical and Health Takaful Underwriting
11. Medical and Health Takaful Certificate Administration
12. Medical Health Takaful Claims

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Chapter X - Topic

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Chapter X - Topic

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Chapter X - Topic

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PART B –
GENERAL
TAKAFUL
TBE REVISION
27TH OCTOBER 2018
CHAPTERS
1. Introduction to General Takaful
2. Classes – Motor Takaful
3. Classes – Fire Takaful
4. Classes – Marine and Aviation Takaful
5. Classes – Engineering Takaful
6. Classes – Miscellaneous Takaful
7. Practices – Risk Assessment and Underwriting
8. Practices – Documentations in General Takaful
9. Practices – Claims
10. Practices – Ethics and Code of Conduct
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Chapter X - Topic

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Chapter X - Topic

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Chapter X - Topic

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Chapter X - Topic

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Chapter X - Topic

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PART C – FAMILY
TAKAFUL
TBE REVISION
27TH OCTOBER 2018
CHAPTERS
1. Preliminaries
2. Plans
3. Practices - Certificate Administration
4. Practices - Underwriting (Refer Part A Chapter 11)
5. Practices - Claims and Partial Withdrawal
6. Key Considerations in Investment
7. Choice of Investment Vehicle
8. Introduction to Investment-Linked Takaful
9. Structure of Investment-Linked Takaful
10. How Investment-Linked Takaful Plan Work
11. Taxation and Law Covering Investment-Linked Takaful Plan (ILTP)
12. Identifying and Establishing Customer Needs
13. Practices: Marketing and Services, Ethics and Code of Conduct

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Chapter 2 - Plans

Importance of Takaful :
Types “Maqasid Shari’ah” –
peace, economic well-being
and convenience, and
development of mankind at all
Individual Group
levels

Optimize return on Eg; Personal accident,

Employee Hospitalization, Term
Savings investment
Benefit

Child’s higher education Surgical/ hospitalization of

Medical &
Education expenses employees/ families
Health

Outstanding mortgage / Pays sum covered +

Retirement
Mortgage home financing accumulated amount (if
Scheme any)

Eg; CI, Waiver of Outstanding personal

Riders Contribution, medical, Credit financing / credit card
hospitalization
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4. Some of the common type of riders include
 
I. Critical Illness coverage
II. Accidental Death and Disability Payor Benefit
III. Endowment Rider
IV. Waiver of Contributions
 
A. I & II only
B. I, II & III only
C. I, II & IV only
D. All of the above are TRUE

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6. Group Family Takaful plans include _____ plans. Select the CORRECT
COMBINATION below.
 
I. group education
II. group investment and savings
III. group medical
IV. group retirement scheme
 
A. I & III only
B. I, II & III only
C. I, III & IV only
D. II, III & IV

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10. 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.

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Chapter 3 – Practices – Certificate Administration

Certificate v Contract Duplicate Certificate Assignment Endorsement

Cert: medium of written
agreement
Contract: legally binding
agreement
Replace lost / misplaced ? Transfer rights Y? ∆ in circumstance
Stamped Types: When? At / after cert
w/ “Duplicate Cert” - Absolute issuance
- Conditional

Privileges & Replacement Exclusion Certificate servicing

Conditions
> 12 months Simple eg: Termination
* 3 types Death due to war, warlike
Y? lapsed, surrendered, operations, strike, riot, civil Maturity
Eg: Grace period, surrender changes commotion
value, free-look period

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1. The Takaful Operator would normally require the following documents
before a replacement certificate (duplicate certificate) can be issued.
Select the CORRECT COMBINATION below

I. a letter of request from the participant

II. a power of attorney from the participant to enable the Operator to issue
a duplicate
III. an undertaking to indemnify the Operator against any loss due to the
issuance of a duplicate certificate.
IV. place a deposit with the Operator to indemnify the Operator for any loss
 
A. I & III only
B. II & III only
C. II & IV only
D. III & IV only
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10. A takaful certificate allows endorsements to be made at the issuance
of the certificate. Select the COMBINATION below which is CORRECT
about such endorsements.

I. those affecting the contribution

II. those affecting the frequency of payment
III. those affecting the sum covered
IV. those affecting the mode of payment
 
A. I & II only
B. I, II & III only
C. II, III & IV only
D. All of the above are TRUE
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4. __________ is the transfer of rights and liabilities by one person to
another.

A. A gift
B. A grant
C. An assignment
D. A deed

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Chapter 8 - Introduction to Investment-Linked Takaful (ILT)

Takaful benefits + shariah-ed investment = ILT

ILT Types Benefits Investment Risks Mitigation

• 1 contribution • Fund • Market • Diversification
• Regular diversification • Liquidity • Volume-traded
contributions • Risk • Currency analysis
diversification • Hedging
• Liquidity

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2. The characteristics of the Investment-Linked Takaful Plan (ILTP) will
include the following.

I. ILTP’s exposure towards equity investment is higher than traditional

Family Takaful plans.
II. the investment risk in ILTP is borne by the certificate owner.
III. the net asset value of the fund in ILTP is subject to the performance of
the investment.
IV. the cost of protection is funded by cancelling the units in the fund.

A. I, II & III
B. II, III & IV
C. I, III & IV
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4. 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

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11. Market risk arises ________. Select the MOST APPROPRIATE answer.

A. due to factors that affect the entire marketplace and include changes
in regulations, politics etc.
B. when investments are made in different Takaful Operators over the
long term
C. when investments are made in different companies over the long term
D. when the Bank Negara places restrictions on investment linked funds

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Chapter 10 - How Investment-Linked Takaful Plan Work

Calculations Concepts Concepts

• Value per unit • Top-ups • Death benefit

• No. of units • Benefit of 1 types;
purchased contribution • Unit value + SC
• No. of units certificate • Unit value or
redeemed • Contribution death cover
• Cash value Holiday • Surplus
• Withdrawal • Withdrawal distribution
amount benefit
• No. of units to be • Surrender value
sold • Maturity value
• Free look period

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4. Calculate the number of units that are purchased based on the
following information.
 
Monthly contribution – RM200
Unit price - RM1.25
Certificate charge - 5%

A. 152 units = 200 (1-0.05) / 1.25

B. 304 units = 152 units
C. 338 units
D. 400 units

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11. The BNM’s Guidelines on Investment-Linked Insurance/Takaful Business
requires the Takaful Operator to

A. seek the participant’s consent before deducting any charges for riders
from the PIF during the contribution holiday period.
B. the Takaful Operator must manage the fund to maximize return to
extend the contribution holiday
C. the Takaful Operator can use the surplus from the shareholder’s fund
to subsidise the contributions to extend the contribution holiday
D. the Takaful Operator is allowed to provide a qard to extend the
contribution holiday for an unlimited period.

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18. 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.

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Chapter 11 - Taxation and Law Covering ILTP

• ILT is categorised as Family product

Basic • Contribution tax relief is allowable

• Protection of public interest

• Promotion of fairness and equity
IFSA2013 • Fostering of competence
• Playing a developmental role

• Age limit of certificate owners

• Free look period
• Minimum contribution payment
Characteristics • Intermediation (TBE)
• Disclosure of information

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1. The maximum amount of relief for an ordinary Family Takaful is
_______ per year less any contributions paid to retirement benefit
schemes i.e. Employees Provident Fund.

A. RM 6,000
B. RM 8,000
C. RM 9,000
D. the whole contribution is deductible.

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3. The main purposes of the Islamic Financial Services Act 2013 (IFSA13)
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

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10. SELECT the STATEMENT below that is NOT TRUE.

A. Single contribution plan must at least have a minimum contribution of

RM 3,000.
B. A participant may terminate the certificate within the 15-days free look
period.
C. Takaful Operators cannot provide investment linked coverage for
substandard lives.
D. Takaful Operators may provide death benefits for older ages subject to
a minimum of RM 5,000 or 105% of the single contributions, whichever
is higher.

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