CPHRM EXAM |ACTUAL QUESTIONS AND VERIFIED
ANSWERS|BRAND NEW 2026-2027
UPDATE|GRADED A+
Question 1
In preparation of working with disruptive patients families or visitors it is important for
organizations to
A. Establish an internal escalation process and communicate to all staff
B. Train staff properly identify the patient's family or visitors issue
C. Teach each staff member how to handle the situation by themselves
D. Encourage security personnel to immediately remove the disruptive persons
CORRECT ANSWER
A. Establish an internal escalation process and communicate to all staff
Question 2
The risk manager of a hospital has a $250,000 indemnity-only deductible for its
professional liability insurance program, with limits of $5 million per claim, no aggregate.
The hospital resolves a claim for $5 million in indemnity, and closes the file with $125,000
in defense costs. Which of the following amounts represents what the hospital will pay on
this claim?
A. $125,000
B. $250,000
C. $375,000
D. $5,125,000
CORRECT ANSWER
B. $250,000
B. The program has an indemnity-only deductible of $250,000, which means that the
insured pays the first $250,000 per occurrence in indemnity. The insurance carrier pays
1
@THE STUDY VAULT
, defense costs on a first dollar basis. There is no applicable deductible. The hospital pays
$250,000 indemnity, while the insurance company pays the remaining $4,750,000
indemnity
Question 3
Based on historical root cause analysis data compiled by The Joint Commission, most
sentinel events could be prevented if
A. Electronic health records (EHR) are adopted.
B. Communications among clinicians are effective.
C. Failure mode and effects analyses (FMEA) are used.
D. The surgical safety checklist is mandatory.
CORRECT ANSWER
B. Communications among clinicians are effective.
-Ineffective communication is the most frequently cited category of root causes of
sentinel events.
Question 4
Ideally, a physician on an interdisciplinary patient safety care team would
A. Take ultimate legal responsibility.
B. Assume ultimate regulatory accountability.
C. Serve as the final authority for the healthcare team.
D. Elicit diverse opinions from the healthcare team members.
CORRECT ANSWER
D. Elicit diverse opinions from the healthcare team members.
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@THE STUDY VAULT
, - Often, physicians are in a good position to invite diverse opinions because of their
perceived leadership role on the team.
Question 5
Upon removal, an epidural catheter is noted to be broken, with approximately 6 inches
remaining in the patient. Risk management actions should include preserving the broken
catheter and notifying the
1. Food and Drug Administration (FDA).
2. Manufacturer.
3. Occupational Safety and Health Administration (OSHA).
4. Professional liability insurer.
A. 1, 2, and 3 only
B. 1, 2, and 4 only
C. 1, 3, and 4 only
D. 2, 3, and 4 only
CORRECT ANSWER
B. 1, 2, and 4 only
1. True. Under the FDA medwatch program, voluntary reports ensure a complete
reporting of device failures.
2. True. Under the Safe Medical Devices Act (SMDA), the manufacturer must be notified
of a potential serious injury/illness.
4. True. When a significant event occurs, the professional liability insurer should be
notified.
3
@THE STUDY VAULT
, Question 6
A 72-year-old male presents to an emergency department with a history of severe
abdominal pain and deteriorating mental status. The consulting surgeon identifies that the
patient needs surgery for a ruptured appendix and resulting sepsis. The patient has an
advance directive and staff is unable to locate the patient's only surviving son. Which of
the following is the BEST principle to guide the surgeon's decision regarding whether to
proceed with surgery?
A. Perform surgery and get the son's consent later.
B. Maintain patient care and continue to try contacting the son for consent.
C. Proceed with surgery under the emergency consent protocol.
D. Seek a court-appointed guardian for healthcare decisions.
CORRECT ANSWER
C. Proceed with surgery under the emergency consent protocol.
-Proceed with surgery under the emergency consent protocol based on the principle that
the patient, if able, would consent for the treatment.
Question 7
The risk manager for an organization insured approves a claim settlement for an amount
exceeding the current indemnity reserve. The risk manager must produce an updated loss
run for the monthly claims management committee meeting. Which of the following BEST
describes the action the risk manager should take when preparing the updated loss run?
A. Increase the indemnity reserve to an amount exceeding the final settlement to cover any
unexpected costs.
B. Reduce the indemnity reserve to zero and increase the indemnity paid to the settlement
amount.
4
@THE STUDY VAULT
ANSWERS|BRAND NEW 2026-2027
UPDATE|GRADED A+
Question 1
In preparation of working with disruptive patients families or visitors it is important for
organizations to
A. Establish an internal escalation process and communicate to all staff
B. Train staff properly identify the patient's family or visitors issue
C. Teach each staff member how to handle the situation by themselves
D. Encourage security personnel to immediately remove the disruptive persons
CORRECT ANSWER
A. Establish an internal escalation process and communicate to all staff
Question 2
The risk manager of a hospital has a $250,000 indemnity-only deductible for its
professional liability insurance program, with limits of $5 million per claim, no aggregate.
The hospital resolves a claim for $5 million in indemnity, and closes the file with $125,000
in defense costs. Which of the following amounts represents what the hospital will pay on
this claim?
A. $125,000
B. $250,000
C. $375,000
D. $5,125,000
CORRECT ANSWER
B. $250,000
B. The program has an indemnity-only deductible of $250,000, which means that the
insured pays the first $250,000 per occurrence in indemnity. The insurance carrier pays
1
@THE STUDY VAULT
, defense costs on a first dollar basis. There is no applicable deductible. The hospital pays
$250,000 indemnity, while the insurance company pays the remaining $4,750,000
indemnity
Question 3
Based on historical root cause analysis data compiled by The Joint Commission, most
sentinel events could be prevented if
A. Electronic health records (EHR) are adopted.
B. Communications among clinicians are effective.
C. Failure mode and effects analyses (FMEA) are used.
D. The surgical safety checklist is mandatory.
CORRECT ANSWER
B. Communications among clinicians are effective.
-Ineffective communication is the most frequently cited category of root causes of
sentinel events.
Question 4
Ideally, a physician on an interdisciplinary patient safety care team would
A. Take ultimate legal responsibility.
B. Assume ultimate regulatory accountability.
C. Serve as the final authority for the healthcare team.
D. Elicit diverse opinions from the healthcare team members.
CORRECT ANSWER
D. Elicit diverse opinions from the healthcare team members.
2
@THE STUDY VAULT
, - Often, physicians are in a good position to invite diverse opinions because of their
perceived leadership role on the team.
Question 5
Upon removal, an epidural catheter is noted to be broken, with approximately 6 inches
remaining in the patient. Risk management actions should include preserving the broken
catheter and notifying the
1. Food and Drug Administration (FDA).
2. Manufacturer.
3. Occupational Safety and Health Administration (OSHA).
4. Professional liability insurer.
A. 1, 2, and 3 only
B. 1, 2, and 4 only
C. 1, 3, and 4 only
D. 2, 3, and 4 only
CORRECT ANSWER
B. 1, 2, and 4 only
1. True. Under the FDA medwatch program, voluntary reports ensure a complete
reporting of device failures.
2. True. Under the Safe Medical Devices Act (SMDA), the manufacturer must be notified
of a potential serious injury/illness.
4. True. When a significant event occurs, the professional liability insurer should be
notified.
3
@THE STUDY VAULT
, Question 6
A 72-year-old male presents to an emergency department with a history of severe
abdominal pain and deteriorating mental status. The consulting surgeon identifies that the
patient needs surgery for a ruptured appendix and resulting sepsis. The patient has an
advance directive and staff is unable to locate the patient's only surviving son. Which of
the following is the BEST principle to guide the surgeon's decision regarding whether to
proceed with surgery?
A. Perform surgery and get the son's consent later.
B. Maintain patient care and continue to try contacting the son for consent.
C. Proceed with surgery under the emergency consent protocol.
D. Seek a court-appointed guardian for healthcare decisions.
CORRECT ANSWER
C. Proceed with surgery under the emergency consent protocol.
-Proceed with surgery under the emergency consent protocol based on the principle that
the patient, if able, would consent for the treatment.
Question 7
The risk manager for an organization insured approves a claim settlement for an amount
exceeding the current indemnity reserve. The risk manager must produce an updated loss
run for the monthly claims management committee meeting. Which of the following BEST
describes the action the risk manager should take when preparing the updated loss run?
A. Increase the indemnity reserve to an amount exceeding the final settlement to cover any
unexpected costs.
B. Reduce the indemnity reserve to zero and increase the indemnity paid to the settlement
amount.
4
@THE STUDY VAULT
