Modern Sharī'ah Scholars

question 61

Multiple Choice

Modern Sharī'ah scholars:

• A) permit takaful operators to undertake reinsurance policies with conventional reinsurance companies
• B) permit takaful operators to undertake reinsurance policies with conventional reinsurance companies under certain conditions
• C) do not permit takaful operators to undertake reinsurance policies with conventional reinsurance companies under any condition
• D) allow takaful operators to reinsure with conventional reinsurance companies only once a year

---

Definitions:

Total Liabilities

Total liabilities refer to the sum of all financial obligations a company owes to outside parties, including loans, accounts payable, and mortgages.

Prepaid Insurance

An asset account that reflects payments made for insurance services before the coverage period.

Asset Account

A record in the financial statements that shows the value of a company's assets, including current, fixed, tangible, and intangible assets.

Liability Accounts

Financial accounting ledgers that record amounts owed to creditors or suppliers.