CVA Legal Compliance and Volunteer Law 2 — Questions and Answers
Question 1: Which type of insurance is most critical for protecting a volunteer program against claims arising from volunteer-caused bodily injury to a third party?
- Directors and officers (D&O) liability insurance
- General liability insurance (Correct answer)
- Workers' compensation insurance
- Professional indemnity insurance
Correct answer: General liability insurance
General liability insurance covers claims of bodily injury or property damage caused by volunteers during program activities, making it the foundational coverage for most volunteer programs.
Question 2: A volunteer coordinator discovers a volunteer has been driving clients in a personal vehicle without proper insurance. The FIRST step should be to:
- Immediately terminate the volunteer's service
- Suspend the activity and address the risk before it continues (Correct answer)
- File a police report about the uninsured vehicle
- Increase the organization's general liability coverage
Correct answer: Suspend the activity and address the risk before it continues
Risk management requires stopping the hazardous activity immediately to prevent further exposure, then investigating and developing a corrective policy before resuming client transportation.
Question 3: Which law requires volunteer programs that handle personal health information to follow strict privacy and security standards?
- FERPA (Family Educational Rights and Privacy Act)
- HIPAA (Health Insurance Portability and Accountability Act) (Correct answer)
- COPPA (Children's Online Privacy Protection Act)
- SOX (Sarbanes-Oxley Act)
Correct answer: HIPAA (Health Insurance Portability and Accountability Act)
HIPAA's Privacy and Security Rules apply to covered entities and their business associates, obligating volunteer programs that access protected health information to follow stringent data-handling protocols.
Question 4: A release of liability (waiver) signed by a volunteer is most effective when it is:
- Presented verbally so the volunteer can ask questions
- Written in plain language, signed voluntarily, and reviewed by legal counsel (Correct answer)
- Required only for high-risk physical activities
- Backdated to the start of the volunteer's service
Correct answer: Written in plain language, signed voluntarily, and reviewed by legal counsel
A well-drafted, clearly worded waiver that a volunteer signs knowingly and voluntarily—and that has been reviewed by an attorney—offers the strongest legal protection while also informing the volunteer of real risks.
Question 5: Mandatory reporting laws related to child abuse and elder abuse typically apply to volunteers when they:
- Are paid a stipend for their service
- Work directly with children or vulnerable adults in a professional or quasi-professional capacity (Correct answer)
- Have been volunteers for more than one year
- Personally witness the abuse on organizational premises only
Correct answer: Work directly with children or vulnerable adults in a professional or quasi-professional capacity
Most state mandatory reporting statutes extend to volunteers who work with children or vulnerable adults in a caregiving or service role, regardless of whether they receive compensation.
Question 6: An organization that improperly classifies paid staff as volunteers to avoid payroll obligations may face penalties under:
- The Volunteer Protection Act
- The Fair Labor Standards Act and IRS regulations (Correct answer)
- The ADA and Title VII
- State nonprofit incorporation laws
Correct answer: The Fair Labor Standards Act and IRS regulations
Misclassifying employees as unpaid volunteers violates FLSA wage-and-hour rules and IRS guidelines on worker classification, exposing the organization to back pay liability, taxes, and penalties.
Question 7: A 'hold harmless' clause in a volunteer agreement is intended to:
- Guarantee the volunteer a safe working environment
- Shift financial responsibility for certain claims away from the organization to the volunteer (Correct answer)
- Allow volunteers to work in restricted areas without supervision
- Satisfy state licensing requirements for the volunteer program
Correct answer: Shift financial responsibility for certain claims away from the organization to the volunteer
A hold harmless provision contractually transfers legal liability for specified claims to the volunteer (or vice versa), reducing the organization's financial exposure for those defined situations.
CVA Legal Compliance and Volunteer Law 2
Which type of insurance is most critical for protecting a volunteer program against claims arising from volunteer-caused bodily injury to a third party?