Documentation & Legal Requirements Flashcards

In an occurrence-based liability policy, which document is most critical in determining whether coverage applies to a claim reported years after the policy period?

Answer: The original policy in effect at the time of the occurrence

Occurrence policies respond based on when the injury or damage occurred, so the policy in force at the time of the occurrence—not the reporting date—governs coverage.

A risk manager is reviewing a loss sensitive program with a large deductible. Which document obligates the insured to reimburse the insurer for losses paid within the deductible layer?

Answer: Deductible reimbursement agreement

A deductible reimbursement agreement (or loss reimbursement agreement) is the contractual document requiring the insured to repay the insurer for claims paid within the deductible retention.

The Americans with Disabilities Act (ADA) requires employers to maintain medical records related to employees' disabilities separately from personnel files. This requirement primarily serves to:

Answer: Protect medical information confidentiality and limit access to authorized personnel only

ADA regulations require confidential medical information to be stored separately from general personnel files and accessed only by those with a legitimate, defined need.

What is the primary legal function of a 'runoff endorsement' (also called a 'tail' endorsement) on a claims-made policy?

Answer: It provides coverage for claims reported after the policy expires for occurrences during the policy period

A tail endorsement extends the reporting period beyond the policy's expiration date, allowing claims arising from covered acts during the policy period to still be reported and covered.

Under the Federal Acquisition Regulation (FAR), government contractors are required to maintain specific insurance documentation. Which of the following is a FAR-required minimum insurance type for most federal construction contracts?

Answer: Workmen's compensation and employer's liability insurance

FAR Part 28 requires federal contractors, especially on construction contracts, to carry workers' compensation and employer's liability insurance at minimum prescribed limits.

A risk manager is negotiating an 'omnibus clause' to be included in a vendor's auto liability policy. What coverage benefit does an omnibus clause provide?

Answer: It extends coverage to any person using an insured vehicle with the named insured's permission

An omnibus clause expands coverage to permissive users of a scheduled vehicle, meaning anyone driving the vehicle with the named insured's expressed or implied permission is covered.

In the context of RIMS risk management documentation, a 'risk register' is best described as:

Answer: A living document cataloging identified risks, their likelihood, impact, and mitigation strategies

A risk register is a central repository that documents identified organizational risks, including probability, severity, ownership, and treatment strategies, and is updated continuously.