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Latest CIPP-US Exam Materials | CIPP-US Hot Spot Questions

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IAPP Certified Information Privacy Professional/United States (CIPP/US) Sample Questions (Q58-Q63):

NEW QUESTION # 58
SCENARIO
Please use the following to answer the next QUESTION
Otto is preparing a report to his Board of Directors at Filtration Station, where he is responsible for the privacy program. Filtration Station is a U.S. company that sells filters and tubing products to pharmaceutical companies for research use. The company is based in Seattle, Washington, with offices throughout the U.S. and Asi a. It sells to business customers across both the U.S. and the Asia-Pacific region. Filtration Station participates in the Cross-Border Privacy Rules system of the APEC Privacy Framework.
Unfortunately, Filtration Station suffered a data breach in the previous quarter. An unknown third party was able to gain access to Filtration Station's network and was able to steal data relating to employees in the company's Human Resources database, which is hosted by a third-party cloud provider based in the U.S. The HR data is encrypted. Filtration Station also uses the third-party cloud provider to host its business marketing contact database. The marketing database was not affected by the data breach. It appears that the data breach was caused when a system administrator at the cloud provider stored the encryption keys with the data itself.
The Board has asked Otto to provide information about the data breach and how updates on new developments in privacy laws and regulations apply to Filtration Station. They are particularly concerned about staying up to date on the various U.S. state laws and regulations that have been in the news, especially the California Consumer Privacy Act (CCPA) and breach notification requirements.
The Board has asked Otto whether the company will need to comply with the new California Consumer Privacy Law (CCPA). What should Otto tell the Board?

A. That business contact information could be considered personal information governed by CCPA.
B. That CCPA will apply to the company only after the California Attorney General determines that it will enforce the statute.
C. That CCPA only applies to companies based in California, which exempts the company from compliance.
D. That the company is governed by CCPA, but does not need to take any additional steps because it follows CPBR.

Answer: B

NEW QUESTION # 59
Under state breach notification laws, which is NOT typically included in the definition of personal information?

A. Social Security number
B. First and last name
C. Medical Information
D. State identification number

Answer: B

Explanation:
Under state breach notification laws, personal information is typically defined as an individual's first name or first initial and last name plus one or more other data elements, such as Social Security number, state identification number, account number, medical information, etc. However, first and last name alone are not usually considered personal information, unless they are combined with other data elements that could identify the individual or compromise their security or privacy. Therefore, option B is the correct answer, as it is not typically included in the definition of personal information under state breach notification laws. References: https://www.ncsl.org/technology-and-communication/security-breach-notification-lawshttps://

NEW QUESTION # 60
Which federal act does NOT contain provisions for preempting stricter state laws?

A. The CAN-SPAM Act
B. The Telemarketing Consumer Protection and Fraud Prevention Act
C. The Children's Online Privacy Protection Act (COPPA)
D. The Fair and Accurate Credit Transactions Act (FACTA)

Answer: B

Explanation:
Explanation

NEW QUESTION # 61
Which of the following would best provide a sufficient consumer disclosure under the Fair Credit Reporting Act (FCRA) prior to a consumer report being obtained for employment purposes?

A. A standalone notice document.
B. A verbal notice provided with a conditional offer of employment
C. A notice provision in a mailed offer letter.
D. A notice provision in an electronic employment application.

Answer: A

Explanation:
Under the Fair Credit Reporting Act (FCRA), employers are required to provide a clear and conspicuous disclosure in a standalone document before obtaining a consumer report (e.g., a background check) for employment purposes. This requirement ensures that the individual is fully aware that a consumer report will be obtained and consents to the process.
Requirements for a Sufficient Consumer Disclosure:
Clear and Conspicuous Disclosure:
Employers must inform the individual, in writing, that a consumer report may be obtained for employment purposes.
Standalone Document:
The disclosure must be provided in a separate document not combined with other materials, such as an employment application. This ensures the individual's attention is focused on the notice.
Written Authorization:
Employers must obtain written authorization from the individual before procuring the consumer report.

NEW QUESTION # 62
SCENARIO
Please use the following to answer the next question:
Miraculous Healthcare is a large medical practice with multiple locations in California and Nevada. Miraculous normally treats patients in person, but has recently decided to start offering telehealth appointments, where patients can have virtual appointments with on-site doctors via a phone app.
For this new initiative. Miraculous is considering a product built by MedApps. a company that makes quality telehealth apps for healthcare practices and licenses them to be used with the practices" branding. MedApps provides technical support for the app. which it hosts in the cloud MedApps also offers an optional benchmarking service for providers who wish to compare their practice to others using the service.
Riya is the Privacy Officer at Miraculous, responsible for the practice s compliance with HIPAA and other applicable laws, and she works with the Miraculous procurement team to get vendor agreements in place. She occasionally assists procurement in vetting vendors and inquiring about their own compliance practices. as well as negotiating the terms of vendor agreements Riya is currently reviewing the suitability of the MedApps app from a pnvacy perspective Riya has also been asked by the Miraculous Healthcare business operations team to review the MedApps' optional benchmarking service. Of particular concern is the requirement that Miraculous Healthcare upload information about the appointments to a portal hosted by MedApps.
Which of the following would accurately describe the relationship of the parties if they enter into a contract for use of the app?

A. MedApps would be the covered entity because it built and hosts the app and all the data.
Miraculous Healthcare would be a business associate because it only provides its brand on the app.
B. Miraculous Healthcare would be the covered entity because Us name and branding are on the app. MedApps would be a business associate because it Is hosting the data that supports the app
C. Miraculous Healthcare would be a covered entity because it is the healthcare provider; MedApps would also be a covered entity because the data in the app is being shared with it.
D. Miraculous Healthcare would be the covered entity because it is the healthcare provider; MedApps would be a business associate because it is providing a service to support Miraculous.

Answer: D

Explanation:
Under the Health Insurance Portability and Accountability Act (HIPAA), entities involved in the handling of protected health information (PHI) are classified as either covered entities or business associates based on their roles and activities.
Definitions Under HIPAA:
Covered Entity (CE):
A healthcare provider, health plan, or healthcare clearinghouse that creates, receives, maintains, or transmits PHI.
Miraculous Healthcare qualifies as a covered entity because it is a medical practice directly providing healthcare services to patients.
Business Associate (BA):
An organization or individual that performs functions, activities, or services involving the use or disclosure of PHI on behalf of a covered entity.
MedApps qualifies as a business associate because it is providing a telehealth app service to Miraculous, which involves hosting and maintaining PHI (e.g., appointment details, patient information).
Analysis of the Relationship:
Miraculous Healthcare: As the healthcare provider, it is responsible for patient care and compliance with HIPAA. Since it directly provides healthcare services to patients, it is the covered entity in this scenario.
MedApps: Although MedApps designed, hosts, and supports the telehealth app, it is providing these services on behalf of Miraculous Healthcare. As such, MedApps is a business associate under HIPAA. This designation requires MedApps to comply with HIPAA regulations through a Business Associate Agreement (BAA), ensuring that it appropriately safeguards the PHI it handles on behalf of Miraculous Healthcare.
Consideration of the Benchmarking Service:

NEW QUESTION # 63
......

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