WorksheetsTBE MOCK QUESTIONS PART 2
Total questions: 47
Worksheet time: 2hrs 21mins
A notice of death should quote:
I. The certificate number
II. The deceased's full name and address
III. The name and address of the claimant and of his/her solicitor
IV. Proof of age
I and II
I, III and IV
II and III
III and IV
A claim arises under any one of the following situations, EXCEPT:
Death of the beneficiary
Maturity of the certificate
Sicknes
Disability benefit
Which of the following documents that the participant need to submit for total and permanenet disability claim?
Medical certificate report by the attending doctor
Verification letter by claim personnel of takaful operator
Report written by takaful agent
Probate letter obtained from court
For death claim, a participant's nominee needs to provide the following documents:
A certified copy of the death certificate
Burial permit
Certification from a takaful agent on nominee's relationship with the deceased
Certified copy of the Takaful certificate
Section 65 Takaful Act 1984 (revised) specifically mentions that Takaful Operator can make interim claim payment up to _________ to the beneficiary wihout the production of any probate or letter of administration
RM50,000
RM100,000
RM150,000
RM200,000
For death claim, takaful operator will accept the following document as the proof of death:
I. Death certificate
II. Deed of assignment
III. Police report or coroner's report
IV. An order pronouncing a statutory presumption of death
I, II and III
I, III and IV
II, III and IV
All of the above
The following principles are the most common bases for arriving at the age of an individual, EXCEPT:
Age last birthday
Age next birthday
Age nearest
Average age
The contribution rate stated in the rate book is only applicable to:
Sub-standard risks
Standard risks
Outstanding risks
Improved risks
Ahmad received a contribution notification from his takaful operator dated 20 July. Ahmad pays his contribution annualy and his contribution due date is 20 August. When is the last day for Mr. A to pay his contribution?
20 July
20 August
30 days after 20 July
30 days after 20 August
Which of the following is NOT an investment objective?
Deficit
Retirement
Children education
Medical
What is an investment horizon?
The objective of the investor when he makes the investment
The total length of time that an investor expects to hold a security or portfolio
The type of portfolio that the investor holds
The number of funds in the investor portfolio
What is the suitable investment for short term fund?
I. Bank deposit
II. Sukuk
III. Treasury securities
IV. Unit Trust
I and II
II and IV
I, II and III
All of the above
What is the timeframe for short term fund?
3 to 10 years
10 to 15 years
Less that 3 years
25 years
Diversification of investment is defined as the process of investing across the following factors, EXCEPT:
Type of asset
Type of industry
Location of business
Type of Investment Linked takaful Product
The value of an investment-linked takaful certificate will fluctuate depending on what factor?
The volume of the share market
The value of the units the certificate holds
The value of the takaful operator
The number of fund managers
In term of returns and riks, compared to traditional with-profit family takaful plans, investment-linked takaful plan provides:
Higher returns and also higher risks
Lower returns and lower risks
Higher returns but lower risks
Lower returns but higher risks
The costs of buying and selling shares include:
I. Difference between buying price and selling price
II. Government's service tax
III. Stockbroker's commission
IV. Securities Commission's fee
I and II
I and III
I, II and III
II, III and IV
The certificate owner may sell all of his units at any time and this is referred to:
Surrender
Top-ups
Withdrawals
Lapse
What is the DISADVANTAGE of investing in shares?
Share has the potential for delivering very large gains, unlike sukuk, general investment account or some other alternatives.
The potential loss from shares purchased with cash is limited to the total amount of the initial investment.
Most stocks are very liquid; in other words, they can be bought and sold quickly at a fair price.
Share prices tend to be volatile, Prices can be erratic, rising and declining quickly.
The following are the advantages of investing in Unit Trust, EXCEPT:
Guaranteed return
Highly qualified portfolio manager specialists make investment decisions and manage the unit trusts
The investment is pooled with other investors, allowing investor to make investments impossible as an individual investor
It provides greater economies of scale, such as reduced transaction costs
Factors that influence the selection of bank account are:
I. The available fund
II. The investment horizon
III. Whether withdrawal is allowed
IV. Current economic situation
I and II
I and III
II, III and IV
All of the above
In line with Shariah, Islamic scholars allow derivatives for the purposes of:
I. Hedging
II. Arbitrage
III. Speculation
IV. Leveraging
I and II
I and III
II, III and IV
All of the above
Under a regular contribution invesment-linked takaful plan_________
I. Contribution top-ups and holidays, subject to the takaful operator administrative rules are usually allowed II. Protection is the main objective of the plan with investment as a nominal purpose
III. Withdrawals and surrenders, usually after the payment of a few years contribution are allowed
IV. A one-off contribution is made to the certificate which uses the payment to purchase units in an investment-linked fund and to provide certain level life cover
I, II and III
I, II and IV
I, III and IV
II, III and IV
Investment-linked funds can be structured into:
Initial units and distribution units
Initial units and separate units
Accumulation units and distribution units
Accumulation units and separated units
These funds are invested mainly in cash and other forms of bank deposit and are low risk and relatively safe. These are:
Bond funds
Equity funds
Property funds
Cash funds
When can the certificate owners normally be allowed to top-up their investment-linked certificates?
Contribution due date
Certificate anniversary date
Any time
When the certificate has built up cash value
What is the Accumulation Unit?
Income is then returned to the fund and unit prices will rise in the long run
Income is distributed to certificate holder as additional units, the units will increase in the long run and the unit price will not change
Income is then returned to the fund and the number of units will be increased in the long run
Income is distributed to certificate holders, in which both the unit price and total units will rise in the long run
Aziz is a risk-taker. He wants to have a specific amount of money in 10 years. Where can he put his money?
I. In a unit trust and Investment-linked product that is heavy into equities.
II. In a fund that specifically targets on high growth
III. In a fund that is mainly invested in government securities
IV. In a bank deposit and cash fund.
I and II
I, II and III
I, III and IV
III and IV
What is meant by switching in the context of investment linked Takaful products?
It is comparison between various types of investment-linked funds.
it allows the certificate holder to make a "switching" part or all of its investments from one fund to another fund.
It is form of liability provisions used by ther certificate holder.
It is the technical name when you participate in any type of Takaful linked investment.
What is the benefit of dollar cost averaging?
The investor will invest at the lower fund price
The investor will get discount from the Takaful operator.
It will spread the cost basis out over several years, providing insulation against changes in market price.
The investor will invest at the higher fund price
Which of the following are risks of investment?
I. Manager Risk
II. Market Risk
III. Liquidity Risk
IV. Currency Risk
V. Reclassification of Shariah Status Risk
I and II
I, II and III
II, III and IV
All of the above
How can market risk affect the performance of investment linked fund?
Market risk will affect the entire marketplace hence may affect the performance of the investment
Market risk will affect the Shariah status of the asset.
Market risk will make the Takaful operator to breach the compliance
Market risk will affect the repayment capability of the borrower
How can profit rate risk arise?
Through fluctuating values of profit-bearing assets, such as a financing or sukuk, due to changes in profit rates.
Fluctuating performance of stock market.
The revision of status of the currently held Shariah-compliant assets.
Adverse movements in currency exchange rates can result in a decrease in return and loss of capital especially when investing in non-ringgit denominated funds
How can currency risk be mitigated?
I. By limiting the investments in Tew countries so that the currency risk to a specific country is minimized.
II. Implement currency hedging program
III. Appointment of experienced fund manager
IV. Periodic review on the Shariah status of the assets under the portfolio.
I
I and II
II, III and IV
All of the above
The benefits of an Investment-Linked Takaful plan are as follows:
I. The ability of the company to pool and diversify
II. The flexibility it offers
III. The minimal charges levied on the policy
IV. The insulation of market risks by the company for the client
I and II
II and IV
I and III
II and IV
Risk can be classified into which categories in relation to investment?
I. The risk of losing some or all of a person's initial investment.
II. The risk of the rate of return on the investment not matching up to one's expectation.
III. The risk of the rate of return on the investment fluctuate according to the market's interest rate.
IV. Market risk that affect the entire marketplace i.e, changes in regulations, politic and economy.
I, II and III
I, II and IV
I, III and IV
All of the above
The investment returns and risk of investment-linked takaful are:
Transferred to the fund managers
Directly transferred to the certificate owners
Directly transferred to the takaful operators
Transferred to the takaful operators and the certificate owners
The principal legal document regulating income tax in Malaysia is the_________
Companies Act, 1965
Insurance Act, 1996
Takaful Act, 1985
Income Tax Act, 1967
What is the personal tax relief limit for medical and education plans?
RM3,000 per year
RM4,000 per year
RM5,000 per year
RM6,000 per year
What is the minimum death benefit for regular contribution investment linked Takaful?
RM3,000 or the prevailing multiple of annual contributions, whichever is higher
RM5,000 or the prevailing multiple of annual contributions, whichever is higher
RM7,500 or the prevailing multiple of annual contributions, whichever is higher
RM5,000 or the prevailing multiple of annual contributions, whichever is higher
In Malaysia, the main purposes of regulating the takaful business include which of the following?
I. The protection of the interest of the takaful operator
II. The fostering of competence
III. The promotion of fairness and equity
IV. The playing of a developmental role
I, II and III
I, III and IV
II, III and IV
All of the above
Fadzli and Salina are two self-employed people who did not contribute to EPF. They have two young children. They would like to maximize their tax relief from takaful. What is the maximum relief that they can claim?
RM9,000 including Family, Medical/ Education Contribution
RM18,000 including Family, Medical/ Education Contribution
RM14,000 including Family, Medical/ Education Contribution
RM16,000 including Family, Medical/ Education Contribution
What is the name of process when the agent does a certificate review?
Establishing and defining the client-agent relationship
Gathering all relevant financial data, including goals
Analyzing and evaluating the client financial status
Monitoring the recommendations
What is the purpose of discussing the possible recommendation with the client?
To establish and define the client-agent relationship
To gather all relevant financial data, including goals
To monitor the recommendations
To ensure the client understands and he can make informed decisions
What is the purpose of monitoring the recommendation?
To make sure the client knows the progress of his investment
To gather all relevant financial data, including goals.
To monitor the recommendations.
To ensure the client understands and he can make informed decisions
In this stage, the agent must consider the most appropriate means of satisfying those needs which may involve financial products other than investment-linked takaful product. This stage is:
Assessing and satisfying customer's needs
After Sales Service
Conducting the fact-find
Making recommendations to the customer and handling objection
The role of an agent in providing financial relief to certificate holder is:
To help participants who are losing their property
To alleviate financial distress faced by family members of the deceased
To propagate the attitude of money savings
All of the above (To change to romanized options)
