IFMP Family Takaful Agents Certification (FTAC), Pakistan flashcards
IFMP Family Takaful Agents Certification (FTAC), Pakistan · Build recall with a focused review session.
32 cards. Read the term and the definition here. The deck at the top of this page is optional.
- Tabarru
- A voluntary donation paid by a participant into the takaful fund, giving the right to a conditional benefit from the pool rather than a contractual return.
- Ta'awun
- Mutual cooperation and solidarity among participants, the ethical basis of takaful under which members help each other meet defined losses.
- Riba
- Interest or usury prohibited in Shariah; takaful avoids it by using donations, profit sharing, and Shariah-compliant investments instead of interest-bearing contracts.
- Gharar
- Excessive uncertainty in a contract; takaful mitigates it by treating contributions as donations and benefits as conditional grants from a shared pool.
- Maysir
- Gambling or speculative gain prohibited in Shariah; takaful excludes it because contributions fund mutual protection, not a wager between parties.
- Wakalah model
- A takaful operator model in which the operator acts as agent for a fixed fee on contributions and may receive a performance fee on surplus.
- Mudarabah model
- A profit-sharing model in which the operator shares investment profit with the participants' fund on a pre-agreed ratio instead of earning a fixed fee.
- Qard-e-hasan
- An interest-free loan from the operator to cover a deficit in the participants' fund, repaid from future surplus before any distribution.
- Shariah Advisory Board
- A board of qualified scholars constituted by each takaful operator whose fatwa governs product design, investments, and surplus distribution.
- Family takaful
- Takaful covering human life and health risks, such as death, disability, critical illness, education, and retirement, as distinct from general takaful.
- Investment-linked plan
- A family takaful plan that splits contributions between a participant account invested in Shariah-compliant funds and a tabarru portion for risk sharing.
- Sum covered
- The amount payable on the defined event under a takaful plan, stated in the policy schedule and distinct from contributions paid or account value.
- Rider
- An add-on benefit attached to a base family takaful plan, such as critical illness or disability cover, subject to limits in the product filing.
- Underwriting surplus
- The excess of tabarru contributions and investment income over claims and expenses in the participants' fund, distributable after actuarial valuation.
- Free cover limit
- The maximum sum covered accepted without medical evidence, set by age band in the product's underwriting rules.
- Grace period
- A stated number of days after a due contribution during which cover continues before the plan lapses or converts per the policy.
- Free-look period
- A period after delivery of the policy document during which the participant may cancel and receive a refund less tabarru for cover provided.
- Surrender value
- The amount payable on early termination of a plan that has acquired a surrender value, typically after two or three years of contributions.
- Nomination
- The participant's designation of a person to receive the takaful benefit on death; in Pakistan the nominee generally acts as trustee for the legal heirs.
- Assignment
- A written transfer of a policy's rights to another person, requiring notice to and endorsement by the takaful operator to be binding.
- Revival
- Reinstatement of a lapsed policy on payment of arrears and evidence of insurability within the revival period stated in the policy.
- Material fact
- Information that would influence an underwriter's decision, such as health, occupation, or income, which the applicant must disclose on the proposal form.
- Incontestability
- A policy provision under which the operator generally cannot contest the contract for non-disclosure after a stated period, except for fraud.
- Substandard risk
- A risk rated above standard because of health, occupation, or lifestyle factors, accepted with extra contribution or an exclusion.
- Postponement
- An underwriting decision deferring acceptance of a risk until a stated review date when the risk is expected to improve.
- Financial underwriting
- Assessment that the sum covered is proportionate to the applicant's income and that insurable interest exists, limiting moral hazard.
- Early claim
- A claim arising shortly after inception, often within two or three years, scrutinized for non-disclosure and exclusion clauses such as suicide.
- Retakaful
- Shariah-compliant reinsurance used by a takaful operator to limit large claims and protect the participants' fund, approved by the Shariah board.
- SECP
- The Securities and Exchange Commission of Pakistan, the regulator that licenses takaful operators, approves products, and monitors solvency and conduct.
- Takaful Rules, 2012
- Pakistani rules governing takaful funds, Shariah Advisory Boards, investments, and conduct, issued under the Insurance Ordinance, 2000.
- Federal Insurance Ombudsman
- A Pakistani forum providing free dispute resolution for policyholders against insurers and takaful operators within prescribed monetary limits.
- Twisting
- Inducing a participant to lapse or surrender an existing policy to buy another, a prohibited market-conduct practice for agents.