Free IAPP CIPP-E Exam Questions

Question 1

To receive a preliminary interpretation on provisions of the GDPR, a national court will refer its case to which of the following?

A : The Court of Justice of the European Union.

B : The European Data Protection Supervisor.

C : The European Court of Human Rights.

D : The European Data Protection Board.

Answer: A

Question 2

SCENARIO -

Please use the following to answer the next question:

CreditPlaya, SA is an established Spanish online insurance company whose exclusive activity is providing health insurance for legal residents of Spain, regardless of their nationality.

CreditPlaya autonomously manages its own website, through which a potential customer, engaging in a free pre-contractual activity, enters his or her full name, e-mail address, tax identification number (to verify residence in Spain), age, profession, and the full names of any other adult members of his or her family.

With this data, CreditPlaya immediately sends an email granting or denying eligibility for a health insurance policy. In the case of eligibility, the email also contains the eventual cost of the policy and two PDF documents – one with the contractual Terms and Conditions, and the other with the privacy notice as required by Article 13 of the GDPR.

The CreditPlaya Information Tracking System (ITS) is very efficient, with a low rate of unpaid insurance policies. The ITS is automatically fed by the information provided by every applicant, whose data is then used to refine insurance policy rates.

To ensure their back-up procedures, in January 2021 CreditPlaya started sending weekly copies of the whole database with all the applicants' personal data to an independent company in Uruguay. The information was sent through state-of-the-art encrypting tools, but once in Uruguay was stored without any encryption method.

In March 2022, the entire data base stored on the Uruguay's company servers was encrypted by malicious ransomware. There was no evidence that the data was accessed by unauthorized persons, much less altered or exfiltrated. Despite the incident, CreditPlaya found that they could rely on the locally based Spanish back-up information and carry on its activity without interrupting its operations. The incident caused the termination of the professional relationship between the two companies.

The content of the email that CreditPlaya sends does not comply with GDPR requirements because it lacks what?

A : The list of information with regard to personal data that were not obtained from the data subject, according to Article 14.

B : The list of the processors and subprocessors involved in the processing, as required by Article 28.

C : The list of processing activities as set out in the records of processing activities, according to Article 30.

D : The list of technical and organizational measures that will be implemented, according to Article 32.

Answer: D

Question 3

Which sentence best describes proper compliance for an international organization using Binding Corporate Rules (BCRs) as a controller or processor?

A : ployees must sign an ad hoc contractual agreement each time personal data is exported.

B : All employees are subject to the rules in their entirety, regardless of where the work is taking place.

C : l employees must follow the privacy regulations of the jurisdictions where the current scope of their work is established.

D : ployees who control personal data must complete a rigorous certification procedure, as they are exempt from legal enforcement.

Answer: C

Question 4

SCENARIO Please use the following to answer the next question: Louis, a long-time customer of Bedrock Insurance, was involved in a minor car accident a few months ago. Although no one was hurt, Louis has been plagued by texts and calls from a company called Accidentable offering to help him recover compensation for personal injury. Louis has heard about insurance companies selling customers' data to third parties, and he's convinced that Accidentable must have gotten his information from Bedrock Insurance.

Louis has also been receiving an increased amount of marketing information from Bedrock, trying to sell him their full range of their insurance policies.

Perturbed by this, Louis has started looking at price comparison sites on the internet and has been shocked to find that other insurers offer much cheaper rates than Bedrock, even though he has been a loyal customer for many years. When his Bedrock policy comes up for renewal, he decides to switch to Zantrum Insurance.
In order to activate his new insurance policy, Louis needs to supply Zantrum with information about his No Claims bonus, his vehicle and his driving history. After researching his rights under the GDPR, he writes to ask Bedrock to transfer his information directly to Zantrum. He also takes this opportunity to ask Bedrock to stop using his personal data for marketing purposes.

Bedrock supplies Louis with a PDF and XML (Extensible Markup Language) versions of his No Claims Certificate, but tells Louis it cannot transfer his data directly to Zantrum as this is not technically feasible. Bedrock also explains that Louis's contract included a provision whereby Louis agreed that his data could be used for marketing purposes; according to Bedrock, it is too late for Louis to change his mind about this. It angers Louis when he recalls the wording of the contract, which was filled with legal jargon and very confusing.

In the meantime, Louis is still receiving unwanted calls from Accidentable Insurance. He writes to Accidentable to ask for the name of the organization that supplied his details to them. He warns Accidentable that he plans to complain to the data protection authority, because he thinks their company has been using his data unlawfully. His letter states that he does not want his data being used by them in any way.

Accidentable's response letter confirms Louis's suspicions. Accidentable is Bedrock Insurance's wholly owned subsidiary, and they received information about Louis's accident from Bedrock shortly after Louis submitted his accident claim. Accidentable assures Louis that there has been no breach of the GDPR, as Louis's contract included, a provision in which he agreed to share his information with Bedrock's affiliates for business purposes. Louis is disgusted by the way in which he has been treated by Bedrock, and writes to them insisting that all his information be erased from their computer system. After Louis has exercised his right to restrict the use of his data, under what conditions would Accidentable have grounds for refusing to comply?

A : Accidentable is entitled to use of the data as an affiliate of Bedrock.

B : If Accidentable also uses the data to conduct public health research.

C : If the data becomes necessary to defend Accidentable's legal rights.

D : the accuracy of the data is not an aspect that Louis is disputing.

Answer: A

Question 5

Start-up company MagicAl is developing an AI system that will be part of a medical device that detects skin cancer. To take measures against potential bias in its AI system, the IT team decides to collect data about users’ ethnic origin, nationality, and gender.Start-up company MagicAl is developing an AI system that will be part of a medical device that detects skin cancer. To take measures against potential bias in its AI system, the IT team decides to collect data about users’ ethnic origin, nationality, and gender.

A : Processing necessary for scientific or statistical purposes.

B : Processing necessary for reasons of substantial public interest.

C : Processing necessary for purposes of preventive or occupational medicine.

D : Processing necessary for the defense of legal claims in potential negligence cases.

Answer: C