INS200 C8 Takaful Insurance Quiz

What is the nature of takaful?

• Members compete against each other for insurance coverage

• Members contribute money into a pool system to guarantee each other against loss or damage

• Members receive free insurance without contributing any money

• Members invest their money in a high-risk stock market

What are the three elements prohibited in takaful?

• Interest, investment, security

• Interest, lottery, risk

• Interest, speculation, certainty

• Interest, gambling, uncertainty

According to Islamic law, what is the primary source of Islamic law?

• Quran and Sunnah

• Hadith and Ijma

• Qiyas and Ijma

• Ijma and Hadith

What is the concept of tabarru' in takaful?

• Participants make a donation to a risk fund to help and assist each other in the event of loss or damage

• Participants receive free insurance without contributing any money

• Participants compete to earn the highest returns on their contributions

• Participants invest their money in a high-risk stock market

What is the basis of a takaful contract?

• Affordability and spiritual satisfaction

• Risk transfer

• Profit maximization

• Risk sharing

In takaful, how are the operating expenses handled?

• Operating expenses are covered by the insurance company's profits

• Operating expenses are charged to the participants without any choice

• Operating expenses can either be borne by the shareholders’ fund (under mudharabah model) or be charged to the participants as fixed upfront charges (under wakalah model)

• Operating expenses are covered by the government

What is the concept of ta'awun in takaful?

• Mutual help among the group of participants to provide financial assistance to fellow participants who have suffered loss

• Competition among participants to earn the highest returns on their contributions

• Participants invest their money in a high-risk stock market

• Participants receive free insurance without contributing any money

What is the origin of takaful according to the text?

• Takaful was introduced by the Prophet Muhammad SAW

• Takaful originated from Western insurance practices

• Takaful was introduced by modern Islamic scholars

• The foundation of shared responsibility or Takaful was laid down in the system of ‘Aaqilah’

What is the concept of donation, gifts, or contribution in takaful?

• The participants invest their money in a high-risk stock market

• The participants receive free insurance without contributing any money

• The participants compete to earn the highest returns on their contributions

• The participants of a takaful plan make an agreement to deposit a certain proportion of takaful contributions into a risk fund

What is the concept of mutual cooperation in takaful?

• The participants invest their money in a high-risk stock market

• The participants receive free insurance without contributing any money

• The participants compete to earn the highest returns on their contributions

• The contributions from the takaful participants in the tabarru’ fund allow them to provide financial assistance to fellow participants who have suffered loss