Practice Test Geeks(RIMS) Risk and Insurance Management Society Certification Practice Test
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Regulatory Compliance & Ethical Standards 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 Regulatory Compliance & Ethical Standards flashcards as text

  1. The Dodd-Frank Wall Street Reform and Consumer Protection Act created which entity to oversee systemic risk in the financial sector?

    Answer: Financial Stability Oversight Council (FSOC)

    The Financial Stability Oversight Council (FSOC) was created by Dodd-Frank to identify and respond to systemic risks to U.S. financial stability.

  2. In insurance regulation, the McCarran-Ferguson Act grants primary regulatory authority over insurance to:

    Answer: Individual state governments

    The McCarran-Ferguson Act of 1945 affirms that regulating the insurance industry is the responsibility of individual states.

  3. Which RIMS ethical principle requires risk management professionals to maintain and improve their knowledge and skills?

    Answer: Competence

    The competence principle requires risk professionals to continuously develop their expertise to serve their organizations effectively.

  4. An organization's enterprise risk management (ERM) program must comply with Sarbanes-Oxley primarily because SOX requires:

    Answer: Public companies to disclose material risks and maintain effective internal controls

    SOX requires public companies to disclose material risks in their annual reports and maintain adequate internal controls over financial reporting.

  5. A risk manager working with an insurance broker discovers the broker receives undisclosed compensation from an insurer. This BEST represents a violation of:

    Answer: Fiduciary duty and disclosure requirements

    Undisclosed broker compensation violates fiduciary duty and transparency requirements, as brokers must disclose all compensation arrangements to their clients.

  6. Under OSHA regulations, employers are required to report work-related fatalities to OSHA within:

    Answer: 8 hours

    OSHA requires employers to report any work-related fatality within 8 hours of learning about it.

  7. The ethical concept of 'due diligence' in risk management requires professionals to:

    Answer: Exercise reasonable care and thoroughness in assessing risks and making decisions

    Due diligence requires risk managers to apply appropriate thoroughness and care when investigating, assessing, and making recommendations about risks.