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
The Clean Air Act's Title V operating permit program requires risk managers at major sources to:
Answer: Obtain a comprehensive permit consolidating all air emission requirements into one enforceable document
Title V permits consolidate all applicable air quality requirements for major sources into a single, comprehensive permit, simplifying compliance tracking and enforcement.
Under the Bank Secrecy Act (BSA) and anti-money laundering (AML) regulations, insurance companies offering certain products must file Suspicious Activity Reports (SARs) for transactions involving:
Answer: Transactions of $5,000 or more where money laundering or other illegal activity is suspected
FinCEN requires covered insurance companies to file SARs for transactions of $5,000 or more where the insurer knows, suspects, or has reason to suspect illegal activity.
A risk manager is evaluating whether a contractual indemnification clause is enforceable. Which type of anti-indemnity statute would void a clause requiring one party to indemnify another for the indemnitee's own negligence?
Answer: Construction anti-indemnity statutes
Construction anti-indemnity statutes, enacted in most states, void contractual provisions that require a subcontractor to indemnify a general contractor for the general contractor's own negligence.
Which regulatory principle requires insurance regulators to give priority to policyholder claims over shareholder and creditor claims when an insurer becomes insolvent?
Answer: Statutory liquidation order of distribution
State insurance liquidation laws establish a statutory order of distribution that prioritizes policyholder claims over general creditors and shareholder interests.
The Affordable Care Act's employer mandate (Section 4980H) penalizes applicable large employers (ALEs) that fail to offer minimum essential coverage to:
Answer: Full-time employees working 30 or more hours per week
ALEs must offer minimum essential coverage to full-time employees defined as those working 30 or more hours per week or 130 hours per month or face potential penalties.
Under the National Environmental Policy Act (NEPA), what must federal agencies complete before undertaking major federal actions significantly affecting the environment?
Answer: An Environmental Impact Statement (EIS)
NEPA requires federal agencies to prepare an Environmental Impact Statement (EIS) for major federal actions significantly affecting the quality of the human environment.
When a risk manager implements an enterprise compliance program, which element does the U.S. Sentencing Commission identify as most critical for an 'effective compliance and ethics program' that can reduce criminal fines?
Answer: High-level personnel with authority and resources to oversee the compliance program
The U.S. Sentencing Guidelines require that high-level personnel in the organization have overall responsibility and be given adequate resources and authority to implement the compliance program.