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  FUNDAMENTALS OF INSURANCE AND TAKAFUL II
 
1) You cannot insure your neighbour’s house because
  A. It is too old.
  B. Your neighbour has bought insurance for it.
  C. You do not have insurable interest.
  D. You do not have insurable right.
  E. It is located beside a petrol station.
 
2) Which of the following are factors you should consider when shopping for an insurance policy or takaful plan?
  A. Life stage and personal needs.
  B. Scope of cover and benefits.
  C. Financial capability.
  D. Licensed insurance company/takaful operator.
  E. All of the above.
 
3) The following statements are true about insurance and takaful, except:
  A. Insurance is the transfer of risk by an individual or organisation to the insurance company.
  B. You can claim from more than one insurance policy/takaful plan in the event of loss or damage to your property.
  C. Takaful is a protection plan based on Shariah principles.
  D. One unique feature of a takaful plan is the sharing of surplus of the fund between you and the takaful operator based on a pre-agreed ratio.
  E. An insurance and takaful plan is a contract of utmost good faith, whereby a policy holder needs to disclose all material facts.
 
4) Why should you care about insurance fraud?
  A. Insurance companies may impose stricter underwriting requirements.   
  B. Insurance fraud results in higher premiums and higher prices for goods and services.
  C. Delayed settlement of genuine claims.
  D. Insurance companies may restrict the scope of coverage.
  E. All of the above.
 
5) Which statement regarding principles of insurance is incorrect?
  A. The principle of indemnity only applies to insurance of physical assets.
  B. It is not necessary to buy more than one policy to protect a particular property.
  C. If you buy more than one life insurance plan, you or your nominees will receive the policy moneys under all the policies.
  D. Failure to disclose all material facts in an insurance policy may make the policy invalid.
  E. Different countries practise different principles of insurance.
 
6) Below are places where you can get help to deal with your insurance/takaful problems except:
  A. Financial Mediation Bureau.
  B. Complaint unit of takaful operators.
  C. Laman Informasi Nasihat dan Khidmat Bank Negara Malaysia (BNM LINK).
  D. Complaint unit of insurance company.
  E. Perbadanan Insurans Deposit Malaysia.
 
  LIFE INSURANCE II
 
7) Which statement regarding an investment-linked insurance plan is incorrect?
  A. An investment-linked insurance plan is a life insurance plan that combines investment and protection.
  B.  There is no exposure to investment risk in an investment-linked insurance plan.
  C. You are given the flexibility to choose your level of protection and investment.
  D.There are several types of fees charged when buying an investment-linked insurance plan.
  E. Premium payments are usually in a  lump-sum or regular basis such as monthly, quarterly, half-yearly and yearly.
 
8) The following benefits are covered under a medical and health policy, except:
  A. Cosmetic or plastic surgery.
  B. Hospital accommodation & nursing expenses.
  C. Surgical expenses.
  D. Physicians’ expenses.
  E. In-patient tests.
 
9) What do you need to consider before putting your money into an investment-linked plan?
  A. Risks involved.
  B. Amount of investment.
  C. Choice of single or regular-premium fund and type of funds.
  D. Level of protection.
  E. All of the above.
 
10) Which of the following are factors you may need to consider in determining the level of coverage for your child education plan?

I. Place of study ; overseas or local
II. Level of qualification
III. Field of study
IV. Length of study
  A. I
  B. I, II
  C. I, II, III
  D. II, III, IV
  E. I, II, III, IV
 
11) Which statement wrongly describes a life insurance policy?
  A. A life policy that offers insurance protection for a limited period is called term insurance.
  B. A whole life insurance policy provides protection up to a certain age e.g. when you are 65.
  C. An endowment insurance is a plan that combines protection and savings.
  D. A policy that offers protection cum investment is called investment-linked insurance.
  E. In a participating life policy, the benefits received is higher as the policy receives bonus/dividend.
 
12) Mr. A received a premium notification from his insurance company dated 20 July. Mr A pays his premium annually and his premium due date is 20 August. When  is the last day for Mr. A to pay his premium?
  A. 20 July.
  B. 20 August.
  C. 30 days after 20 July.
  D. 30 days after  20 August.
  E. Immediately.
 
13) Mr. B bought an investment-linked insurance plan. After receiving his insurance policy he was not happy with the plan and would like to cancel the plan. What should Mr. B do?
  A. Call the insurance agent to complain.
  B. Cancel the policy by returning the policy to the insurance company within 15 days after he has received the policy document.
  C. Let the policy lapse after the first year.
  D. Seek assistance of the Financial Mediation Bureau.
  E. Seek legal advice.
 
  GENERAL INSURANCE II
 
14) Which policy does not protect your home against loss or damage to the building and/or household content?
  A. Basic fire policy.
  B. Houseowners policy.
  C. Householders policy.
  D. Mortgage Reducing Term Assurance (MRTA).
  E. None of the above.
 
15) Which one of the following is not covered under a standard comprehensive motor policy:
  A. Liabilities to third party injury and death as well as damage or loss to third party property.
  B. Loss or damage to own vehicle due to accidental fire and theft.
  C. Loss or damage to own vehicle due to accident.
  D. Liabilities to drivers and passengers of own vehicle.
  E. None of the above.
 
16) The types of coverage normally provided under a personal accident insurance include:

I. Accidental death
II. Permanent disablement
III. Temporary total or partial disablement
IV. Medical expenses
V. Hospitalisation benefits
  A. I
  B. I, II
  C. I, II, III
  D. I, II, III, IV
  E. I, II, III, IV, V
 
17) These are the actions you should take in the event of damage/loss under a travel insurance plan except?
  A. Contact the medical and emergency assistance hotline.
  B. Notify the authorities.
  C. Notify your insurance company as soon as possible.
  D. Keep all supporting documents for claim submission.
  E. Nominate a beneficiary.
 
18) Which one of the following is not true about travel insurance?
  A. The coverage is usually limited to the period of your travel.
  B. You can take a travel policy for you and/or your family members.
  C. If you have more than one travel insurance policies, your beneficiary will be compensated for each policy in the event of your demise.
  D. You can insure the loss or damage of your freight in transit through travel insurance.
  E. Baggage delay and loss of baggage or personal effects due to seizure or destruction under the quarantine or custom regulation are excluded from the cover.
 
19) If you are not the party at fault in an accident and want to retain your ‘no-claim discount (NCD), which one of the following claim approach is preferred:
  A. Own damage claim.
  B. Third party claim.
  C. Theft claim.
  D. Own damage and third party claim.
  E. All of the above.
 
20) How much insurance cover should you buy for your house?   
  A. Any amount of your choice.
  B. Market value of your house.
  C. Equivalent to the amount of loan taken from your bank.
  D. Cost of rebuilding your house.
  E. Purchase price of your house.
 
 
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