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CAS-004 Practice Question: Which THREE of the following are required for a…

Which THREE of the following are required for a valid Business Associate Agreement (BAA) under HIPAA? (Select THREE)

⚠ Common exam trap

The CAS-004 exam often tests the distinction between mandatory BAA elements (permitted uses, safeguards, breach notification) and optional contractual terms (indemnification, data storage location) to see if candidates confuse common business contract clauses with HIPAA regulatory requirements.

Answer choices

Why each option matters

Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.

Correct answer & explanation

Permitted and required uses of PHI

A Business Associate Agreement (BAA) must specify the permitted and required uses of Protected Health Information (PHI) by the business associate. This is a core requirement under HIPAA §164.504(e)(2)(i) to ensure the business associate does not use or disclose PHI beyond what is authorized by the covered entity or required by law.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • Indemnification clause for breaches

    Why it's wrong here

    Not required by HIPAA

  • Permitted and required uses of PHI

    Why this is correct

    Must be specified

  • Requirement to store data in the United States

    Why it's wrong here

    Not a HIPAA requirement

  • Safeguards to protect PHI

    Why this is correct

    Required

  • Procedures for breach notification

    Why this is correct

    Required

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Written by Johnson Ajibi, MSc IT Security

Senior Network & Security Engineer · founder of Courseiva

This CAS-005 practice question is part of Courseiva's free CompTIA certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the CAS-005 exam.