Trip Cancellation & Travel Insurance Flashcards
7 cards from real CTA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Trip Cancellation & Travel Insurance flashcards as text
A traveler purchases travel insurance but fails to disclose a recent cancer diagnosis. The insurer later denies a cancer-related claim. What legal principle justifies the denial?
Answer: Material misrepresentation
Material misrepresentation — withholding information that would affect underwriting — gives insurers grounds to deny claims or void policies.
Which travel insurance benefit would cover a traveler who needs to be flown home by private air ambulance after a serious accident abroad?
Answer: Emergency medical evacuation
Emergency medical evacuation covers the cost of transporting an injured or ill traveler to an appropriate medical facility or back home.
What is 'subrogation' in the context of travel insurance?
Answer: The insurer's right to recover from a third party after paying a claim
Subrogation allows the insurer to pursue recovery from a responsible third party after compensating the insured traveler.
A couple purchases a joint travel insurance policy. One spouse becomes ill and cannot travel; the other spouse chooses to cancel also. Is the healthy spouse's cancellation typically covered?
Answer: Yes, a traveling companion's cancellation is a standard covered reason
Most trip cancellation policies cover a traveling companion canceling when the other insured traveler cannot travel due to a covered reason.
Which of the following is NOT typically covered under standard trip cancellation insurance?
Answer: Fear of travel due to a news report about unrest
Fear of travel based on news reports is not a covered peril under standard trip cancellation; CFAR would be needed for this.
A traveler's flight is delayed 6 hours, causing them to miss a prepaid dinner reservation worth $150. What travel insurance benefit may cover this?
Answer: Travel delay
Travel delay coverage reimburses reasonable additional expenses — like meals — incurred due to a covered delay.
Which insurer rating organization is most commonly referenced when evaluating the financial strength of travel insurance providers?
Answer: A.M. Best
A.M. Best is the primary rating agency used to assess the financial stability and claims-paying ability of insurance companies.