RIMS Regulatory Framework & Compliance 3

Question 1

The Foreign Corrupt Practices Act (FCPA) creates compliance obligations for risk managers primarily related to:

Accepted Answer

Bribery of foreign government officials and accurate record-keeping

Answer

The FCPA prohibits bribing foreign government officials to obtain business and requires companies to maintain accurate books and records.

Question 2

Which regulatory framework governs the privacy and security of protected health information (PHI) most relevant to employer-sponsored health plans?

Accepted Answer

HIPAA Privacy and Security Rules

Answer

HIPAA's Privacy and Security Rules establish federal standards for protecting PHI held by health plans, healthcare providers, and their business associates.

Question 3

Under the Terrorism Risk Insurance Act (TRIA), what is the insurer's obligation when offering commercial property and casualty policies?

Accepted Answer

Insurers must make terrorism coverage available and disclose the premium charge separately

Answer

TRIA requires insurers to make terrorism coverage available to commercial policyholders and to separately disclose the premium for that coverage.

Question 4

Which compliance concept describes an organization's obligation to report known violations of law to the government, even absent a specific statutory requirement to do so?

Accepted Answer

Voluntary self-disclosure

Answer

Voluntary self-disclosure involves an organization proactively reporting violations to regulators, often in exchange for reduced penalties and cooperation credit.

Question 5

A risk manager is reviewing a surplus lines placement for a unique risk. What is the PRIMARY regulatory requirement before placing coverage with an unlicensed (non-admitted) insurer?

Accepted Answer

Diligent search requirement demonstrating the risk cannot be placed in the admitted market

Answer

Most states require a diligent search of the admitted market demonstrating the coverage is unavailable before a surplus lines placement is permissible.

(RIMS) Risk and Insurance Management Society Certification Practice Test

(RIMS) Risk and Insurance Management Society Certification Practice Test

RIMS Regulatory Framework & Compliance 3