AIIM Certified Islamic Insurance CIIP Exam
**Question 1. Which Islamic principle prohibits contracts that contain excessive uncertainty
(gharar)?**
A) Riba
B) Maisir
C) Gharar
D) Tabarru
Answer: C
Explanation: Gharar refers to excessive uncertainty or ambiguity in contracts, which is
prohibited in Islamic law.
**Question 2. In Takaful, what does the term “Tabarru” signify?**
A) Profit sharing
B) Donation or contribution for mutual assistance
C) Agency fee
D) Investment return
Answer: B
Explanation: Tabarru is the voluntary contribution by participants to a pool for mutual
assistance, forming the basis of Takaful.
**Question 3. Which model of Takaful involves the operator acting as a manager and sharing
surplus based on a pre‑agreed profit‑sharing ratio?**
A) Wakalah
B) Mudharabah
C) Hybrid
D) Waqf
Answer: B
, AIIM Certified Islamic Insurance CIIP Exam
Explanation: In the Mudharabah model, the operator manages the fund and shares surplus with
participants according to a profit‑sharing ratio.
**Question 4. Under the Wakalah model, the Takaful operator receives compensation in the
form of:**
A) A share of surplus only
B) A fixed Wakala fee
C) Dividend from participants
D) Investment returns on PRF
Answer: B
Explanation: The Wakalah model pays the operator a pre‑agreed fixed fee (Wakala fee) for
managing the participants’ risk fund.
**Question 5. Which of the following is NOT a permissible investment for a Takaful fund
according to Shariah?**
A) Sukuk backed by halal assets
B) Conventional interest‑bearing bonds
C) Shares of a Shariah‑compliant bank
D) Real estate used for residential purposes
Answer: B
Explanation: Conventional interest‑bearing bonds involve riba, which is prohibited; all other
options can be Shariah‑compliant.
**Question 6. The primary purpose of a Shariah Supervisory Board (SSB) in a Takaful company is
to:**
A) Set premium rates
B) Conduct actuarial valuations
C) Ensure compliance with Islamic law
, AIIM Certified Islamic Insurance CIIP Exam
D) Manage marketing strategies
Answer: C
Explanation: The SSB reviews products, investments, and operations to verify conformity with
Shariah principles.
**Question 7. Which of the following best describes “Re‑Takaful”?**
A) Conventional reinsurance for Takaful operators
B) A Shariah‑compliant reinsurance arrangement
C) An investment fund for participants
D) A government‑backed guarantee scheme
Answer: B
Explanation: Re‑Takaful is the Islamic alternative to conventional reinsurance, allowing risk
sharing among Takaful operators within Shariah guidelines.
**Question 8. In a Hybrid Takaful model, the operator combines features of which two
models?**
A) Mudharabah and Waqf
B) Wakalah and Mudharabah
C) Waqf and Conventional insurance
D) Agency and Joint venture
Answer: B
Explanation: The Hybrid model blends the agency fee of Wakalah with profit‑sharing of
Mudharabah.
**Question 9. Which regulatory body issues the AAOIFI standards that guide Takaful accounting
and auditing?**
A) IFSB
, AIIM Certified Islamic Insurance CIIP Exam
B) Basel Committee
C) AAOIFI
D) ISO
Answer: C
Explanation: The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI)
develops standards for Islamic financial institutions, including Takaful.
**Question 10. The term “Participants’ Risk Fund (PRF)” refers to:**
A) The capital contributed by shareholders
B) The pool of contributions used to pay claims
C) The surplus distributed to investors
D) The reserve for future investments
Answer: B
Explanation: PRF is the collective pool of Tabarru contributions that is used to indemnify
participants when covered events occur.
**Question 11. Which of the following is considered “Maisir” and therefore prohibited in
Takaful contracts?**
A. Profit‑sharing on surplus
B. Gambling‑type bonus schemes
C. Fixed fee for agency services
D. Investment in halal equities
Answer: B
Explanation: Maisir refers to gambling or games of chance; bonus schemes that resemble
gambling are prohibited.
**Question 1. Which Islamic principle prohibits contracts that contain excessive uncertainty
(gharar)?**
A) Riba
B) Maisir
C) Gharar
D) Tabarru
Answer: C
Explanation: Gharar refers to excessive uncertainty or ambiguity in contracts, which is
prohibited in Islamic law.
**Question 2. In Takaful, what does the term “Tabarru” signify?**
A) Profit sharing
B) Donation or contribution for mutual assistance
C) Agency fee
D) Investment return
Answer: B
Explanation: Tabarru is the voluntary contribution by participants to a pool for mutual
assistance, forming the basis of Takaful.
**Question 3. Which model of Takaful involves the operator acting as a manager and sharing
surplus based on a pre‑agreed profit‑sharing ratio?**
A) Wakalah
B) Mudharabah
C) Hybrid
D) Waqf
Answer: B
, AIIM Certified Islamic Insurance CIIP Exam
Explanation: In the Mudharabah model, the operator manages the fund and shares surplus with
participants according to a profit‑sharing ratio.
**Question 4. Under the Wakalah model, the Takaful operator receives compensation in the
form of:**
A) A share of surplus only
B) A fixed Wakala fee
C) Dividend from participants
D) Investment returns on PRF
Answer: B
Explanation: The Wakalah model pays the operator a pre‑agreed fixed fee (Wakala fee) for
managing the participants’ risk fund.
**Question 5. Which of the following is NOT a permissible investment for a Takaful fund
according to Shariah?**
A) Sukuk backed by halal assets
B) Conventional interest‑bearing bonds
C) Shares of a Shariah‑compliant bank
D) Real estate used for residential purposes
Answer: B
Explanation: Conventional interest‑bearing bonds involve riba, which is prohibited; all other
options can be Shariah‑compliant.
**Question 6. The primary purpose of a Shariah Supervisory Board (SSB) in a Takaful company is
to:**
A) Set premium rates
B) Conduct actuarial valuations
C) Ensure compliance with Islamic law
, AIIM Certified Islamic Insurance CIIP Exam
D) Manage marketing strategies
Answer: C
Explanation: The SSB reviews products, investments, and operations to verify conformity with
Shariah principles.
**Question 7. Which of the following best describes “Re‑Takaful”?**
A) Conventional reinsurance for Takaful operators
B) A Shariah‑compliant reinsurance arrangement
C) An investment fund for participants
D) A government‑backed guarantee scheme
Answer: B
Explanation: Re‑Takaful is the Islamic alternative to conventional reinsurance, allowing risk
sharing among Takaful operators within Shariah guidelines.
**Question 8. In a Hybrid Takaful model, the operator combines features of which two
models?**
A) Mudharabah and Waqf
B) Wakalah and Mudharabah
C) Waqf and Conventional insurance
D) Agency and Joint venture
Answer: B
Explanation: The Hybrid model blends the agency fee of Wakalah with profit‑sharing of
Mudharabah.
**Question 9. Which regulatory body issues the AAOIFI standards that guide Takaful accounting
and auditing?**
A) IFSB
, AIIM Certified Islamic Insurance CIIP Exam
B) Basel Committee
C) AAOIFI
D) ISO
Answer: C
Explanation: The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI)
develops standards for Islamic financial institutions, including Takaful.
**Question 10. The term “Participants’ Risk Fund (PRF)” refers to:**
A) The capital contributed by shareholders
B) The pool of contributions used to pay claims
C) The surplus distributed to investors
D) The reserve for future investments
Answer: B
Explanation: PRF is the collective pool of Tabarru contributions that is used to indemnify
participants when covered events occur.
**Question 11. Which of the following is considered “Maisir” and therefore prohibited in
Takaful contracts?**
A. Profit‑sharing on surplus
B. Gambling‑type bonus schemes
C. Fixed fee for agency services
D. Investment in halal equities
Answer: B
Explanation: Maisir refers to gambling or games of chance; bonus schemes that resemble
gambling are prohibited.
