Based on the IRS, the court allowed the
policyholder's action to proceed as a claim for property.
These include deficits in the
policyholders' fund and non-payment of contributions, i.e., bad debt, as well as poor risk selection, inadequate pricing and weak investment management.
"We believe in offering consistent returns to our participating
policyholders. In spite of volatile market conditions experienced over the last year, we are able to offer stable bonus to our
policyholders.
QIIC adopts a combined Takaful model, whereby the shareholders' fund charges a Wakala fee based on gross written premiums and a Muderaba fee based on investment income to the
policyholders' fund.
In addition, while the cancelation or reduction in credit limits increases exposure to the
policyholder for future transactions with the customer, the
policyholder is at least aware of potential credit issues, enabling it to make an educated decision as to whether to extend credit going forward.
"The company treated its
policyholders unfairly," Insurance Commissioner Laura Cali said in a prepared statement.
At the heart of this problem is the
policyholder's duty to