In Situations Where It Is Clear That the Deficit in the in Participants

question 71

Multiple Choice

In situations where it is clear that the deficit in the in Participants Risk Fund PRF. is due to the negligence or mismanagement of the takaful operator, such deficit may be rectified:

• A) through the transfer of assets from the shareholders' fund
• B) through the borrowing from the shareholders' funds the amount of deficit that should be paid back from future surpluses
• C) by asking the policyholders to meet the deficit pro rata
• D) by increasing the future premium contribution of policyholders on a pro-rata basis
• E) all of the above

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Definitions:

Cotton Production

The cultivation and harvesting of cotton plants for their fiber, which is used in textile manufacturing.

Excess

An amount or quantity greater than what is normal or necessary; often associated with wastefulness or extravagance.

International Slave Trade

The global trade in humans for the purpose of slavery, forcibly transporting individuals from primarily Africa across the world, especially to the Americas.

Reopening

The act of making something open again to the public or resuming operations after it has been closed or stopped.