Documentation & Legal Requirements Flashcards
7 cards from real RIMS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Documentation & Legal Requirements flashcards as text
A risk manager is reviewing a manuscript policy form. Compared to standard ISO forms, a manuscript form is best described as:
Answer: A custom-drafted policy negotiated specifically for a particular insured
A manuscript form is a policy that has been individually drafted or heavily modified to meet the specific coverage needs of a particular insured, unlike standardized ISO forms.
Which document establishes the legal relationship between a captive insurance company and its parent, outlining ownership, governance, and capitalization requirements?
Answer: Articles of incorporation and bylaws
The articles of incorporation and bylaws are the foundational legal documents that establish the captive's corporate structure, governance, and ownership.
Under the U.S. Longshoremen and Harbor Workers' Compensation Act (LHWCA), employers must file what document to report a workplace injury?
Answer: LS-202 Employer's First Report of Injury
The LS-202 is the mandatory first report of injury form required under the LHWCA, filed with the U.S. Department of Labor's Office of Workers' Compensation Programs.
In a contractual risk transfer context, what is an 'anti-indemnity statute'?
Answer: A state law that voids indemnification clauses that would require one party to indemnify another for its own negligence
Anti-indemnity statutes, enacted in many states, void contractual provisions requiring one party to indemnify another party for that second party's own negligence.
What is the role of the 'schedule of underlying insurance' in an umbrella liability policy?
Answer: It identifies the primary policies whose limits must be exhausted before the umbrella responds
The schedule of underlying insurance documents all primary liability policies that must be exhausted before the umbrella policy drops down to provide excess coverage.
A risk manager receives a subpoena for insurance records related to litigation. Under most state insurance regulations, the appropriate first step is to:
Answer: Notify the insurer and legal counsel before responding to the subpoena
Upon receiving a subpoena for insurance records, the risk manager should immediately notify the insurer and engage legal counsel to ensure proper response and privilege review.
Which ISO standard is most commonly used by organizations to establish frameworks for documenting and managing enterprise risk?
Answer: ISO 31000
ISO 31000 is the international standard specifically addressing risk management principles, frameworks, and processes, providing guidance for documenting risk management programs.