Question 1

Acme Student Loan Company has developed an artificial intelligence algorithm that determines whether anindividual is likely to pay their bill or default. A person who is determined by the algorithm to be more likelyto default will receive frequent payment reminder calls, while those who are less likely to default will notreceive payment reminders.Which of the following most accurately reflects the privacy concerns with Acme Student Loan Company usingartificial intelligence in this manner?

Options :

A : If the algorithm uses risk factors that impact the automatic decision engine. Acme must ensure that thealgorithm 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 notdetermine 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 adisparate impact on protected classes.

D : If the algorithm uses information about protected classes to make automated decisions, Acme mustensure that the algorithm does not have a disparate impact on protected classes in the output.

Answer: B

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

Read this notice:Our website uses cookies. Cookies allow us to identify the computer or device you’re using to access the site,but they don’t identify you personally. For instructions on setting your Web browser to refuse cookies, clickhere.What type of legal choice does not notice provide?

Options :

A : Mandatory

B : Implied consent

C : Opt-in

D : Opt-out

Answer: B

Question 4

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 5

A covered entity suffers a ransomware attack that affects the personal health information (PHI) of more than 500 individuals. According to Federal law under HIPAA, which of the following would the covered entity NOT have to report the breach to?

Options :

A : Department of Health and Human Services

B : The affected individuals

C : The local media

D : Medical providers

Answer: D

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