CTA Trip Cancellation & Travel Insurance 3

Question 1

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?

Accepted Answer

Material misrepresentation

Answer

Material misrepresentation — withholding information that would affect underwriting — gives insurers grounds to deny claims or void policies.

Question 2

Which travel insurance benefit would cover a traveler who needs to be flown home by private air ambulance after a serious accident abroad?

Accepted Answer

Emergency medical evacuation

Answer

Emergency medical evacuation covers the cost of transporting an injured or ill traveler to an appropriate medical facility or back home.

Question 3

What is 'subrogation' in the context of travel insurance?

Accepted Answer

The insurer's right to recover from a third party after paying a claim

Answer

Subrogation allows the insurer to pursue recovery from a responsible third party after compensating the insured traveler.

Question 4

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?

Accepted Answer

Yes, a traveling companion's cancellation is a standard covered reason

Answer

Most trip cancellation policies cover a traveling companion canceling when the other insured traveler cannot travel due to a covered reason.

Question 5

Which of the following is NOT typically covered under standard trip cancellation insurance?

Accepted Answer

Fear of travel due to a news report about unrest

Answer

Fear of travel based on news reports is not a covered peril under standard trip cancellation; CFAR would be needed for this.

(CTA) Certified Travel Associate Practice Test

(CTA) Certified Travel Associate Practice Test

CTA Trip Cancellation & Travel Insurance 3