Regulatory Framework & Compliance 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 Framework & Compliance flashcards as text
Which of the following best describes the regulatory concept of 'concurrent causation' in property insurance disputes?
Answer: When both covered and excluded perils contribute to a loss, creating coverage ambiguity
Concurrent causation occurs when both an insured peril and an excluded peril contribute to a loss, leading courts and regulators to develop various doctrines to determine coverage.
The NAIC's Model Insurance Data Security Law (based on the NY DFS Cybersecurity Regulation) requires insurers to notify the state insurance commissioner of a cybersecurity event within:
Answer: 72 hours of discovery
The NAIC Model Law requires licensees to notify the commissioner of a cybersecurity event no later than 72 hours after determination that a notification event has occurred.
A corporation's risk manager must comply with Sarbanes-Oxley Section 404. What is the primary risk management implication of this requirement?
Answer: Documentation and testing of internal controls over financial reporting
SOX Section 404 requires management and external auditors to report on the adequacy of internal controls over financial reporting, directly implicating risk management processes.
Under the Equal Employment Opportunity Commission (EEOC) guidelines, an employer's failure to accommodate a disabled employee's known limitations may constitute what type of discrimination?
Answer: Failure to provide reasonable accommodation under the ADA
The ADA requires employers to provide reasonable accommodation to qualified individuals with disabilities unless doing so would cause undue hardship.
Which international risk management standard provides guidance on risk management principles and implementation, often cited in enterprise risk management frameworks?
Answer: ISO 31000
ISO 31000 provides universal principles, framework, and process for managing risk applicable to any organization regardless of size, activity, or sector.
A risk manager learns their company must comply with the OSHA Process Safety Management (PSM) standard. This regulation applies primarily to facilities that:
Answer: Handle highly hazardous chemicals above specified threshold quantities
OSHA's PSM standard (29 CFR 1910.119) applies to processes involving highly hazardous chemicals in quantities at or above specified thresholds listed in the regulation's appendix.
In the context of insurance regulation, what does the concept of 'guaranty fund assessment' mean for risk managers of solvent insurers?
Answer: Solvent insurers may be assessed to pay claims of insolvent insurers' policyholders
State guaranty associations assess solvent member insurers to fund claims against insolvent insurers, representing a contingent liability for risk managers to consider.