Question 1

What important action should a health care provider take if the she wants to qualify for funds under the Health Information Technology for Economic and Clinical Health Act (HITECH)?

Options :

A : Make electronic health records (EHRs) part of regular care

B : Bill the majority of patients electronically for their health care

C : Send health information and appointment reminders to patients electronically

D : Keep electronic updates about the Health Insurance Portability and Accountability Act

Answer: A

Question 2

Under the Fair and Accurate Credit Transactions Act (FACTA), what is the most appropriate action for a car dealer holding a paper folder of customer credit reports?

Options :

A : To follow the Disposal Rule by having the reports shredded

B : To follow the Red Flags Rule by mailing the reports to customers

C : To follow the Privacy Rule by notifying customers that the reports are being stored

D :

To follow the Safeguards Rule by transferring the reports to a secure electronic file

Answer: C

Question 3

If an organization certified under Privacy Shield wants to transfer personal data to a third party acting as an

agent, the organization must ensure the third party does all of the following EXCEPT?

Options :

A : Uses the transferred data for limited purposes

B : Provides the same level of privacy protection as the organization

C : Notifies the organization if it can no longer meet its requirements for proper data handling

D : Enters a contract with the organization that states the third party will process data according to the consent agreement

Answer: D

Question 4

Which of the following is an important implication of the Dodd-Frank Wall Street Reform and Consumer

Protection Act?

Options :

A : Financial institutions must avoid collecting a customer’s sensitive personal information

B :

Financial institutions must help ensure a customer’s understanding of products and services

C : Financial institutions must use a prescribed level of encryption for most types of customer records

D : Financial institutions must cease sending e-mails and other forms of advertising to customers who opt out of direct marketing

Answer: B

Question 5

Acme Student Loan Company has developed an artificial intelligence algorithm that determines whether an

individual is likely to pay their bill or default. A person who is determined by the algorithm to be more likely

to default will receive frequent payment reminder calls, while those who are less likely to default will not

receive payment reminders.

Which of the following most accurately reflects the privacy concerns with Acme Student Loan Company using

artificial intelligence in this manner?

Options :

A :

If the algorithm uses risk factors that impact the automatic decision engine. Acme must ensure that the

algorithm does not have a disparate impact on protected classes in the output.

B :

If the algorithm makes automated decisions based on risk factors and public information, Acme need not

determine if the algorithm has a disparate impact on protected classes.

C :

If the algorithm’s methodology is disclosed to consumers, then it is acceptable for Acme to have a

disparate impact on protected classes.

D :

If the algorithm uses information about protected classes to make automated decisions, Acme must

ensure that the algorithm does not have a disparate impact on protected classes in the output.

Answer: B

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