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's bag is lost by an airline. Which coverage source should typically be pursued FIRST before filing a travel insurance baggage claim?
Answer: The airline's liability under DOT regulations
Airlines bear primary liability for lost checked baggage, so their compensation should be pursued first before travel insurance pays.
Which of the following travel insurance terms refers to the insurer's right to recover costs paid on behalf of a traveler from the party responsible for the loss?
Answer: Subrogation
Subrogation is the right of the insurer to step into the traveler's position and seek recovery from the at-fault third party.
A client is concerned about needing dialysis treatments during an international trip. Which type of coverage should the travel agent specifically highlight?
Answer: Pre-existing condition medical coverage
Ongoing dialysis is a pre-existing condition, so medical coverage with a pre-existing condition waiver is critical for this traveler.
Under the principle of indemnity, what is the maximum amount a travel insurance policy can pay for a covered loss?
Answer: The actual financial loss suffered, up to the policy limit
Indemnity means the traveler is restored to their pre-loss financial position — no more, no less — up to the policy limit.
A travel agent's client is an adventure enthusiast planning to go bungee jumping in New Zealand. What should the agent advise regarding standard travel insurance?
Answer: Many standard policies exclude high-risk adventure activities; an adventure sports rider may be needed
Standard travel insurance often excludes injuries from high-risk activities like bungee jumping; an adventure sports rider adds the needed coverage.
A travel insurance policy has a 'coordination of benefits' clause. What does this mean for a traveler with both travel insurance and a personal health insurance plan?
Answer: The two policies work together so combined payments do not exceed the actual loss
Coordination of benefits prevents over-insurance by ensuring that combined payments from multiple policies don't exceed the actual covered loss.
What is the typical deadline for filing a travel insurance claim after a covered loss occurs?
Answer: Within 90 days of the loss or return from trip
Most travel insurance policies require claims to be filed within 90 days of the covered loss or return from the trip.