CTC CTC Travel Insurance & Risk Management 2 — Questions and Answers
Question 1: Which U.S. government program should travel counselors recommend clients enroll in before international travel for emergency notification purposes?
- TSA PreCheck
- Smart Traveler Enrollment Program (STEP) (Correct answer)
- Global Entry
- NEXUS
Correct answer: Smart Traveler Enrollment Program (STEP)
The Smart Traveler Enrollment Program (STEP) allows U.S. citizens traveling abroad to register with the U.S. Embassy so they can receive safety alerts and be located in an emergency.
Question 2: A U.S. travel counselor advising a client on international travel should refer them to which government resource for destination-specific safety and health information?
- The CIA World Factbook
- The U.S. State Department Travel Advisories (Correct answer)
- The TSA website
- The Customs and Border Protection website
Correct answer: The U.S. State Department Travel Advisories
The U.S. State Department issues Travel Advisories with four levels (1–4) for every country, covering safety, health risks, entry requirements, and emergency contacts.
Question 3: What is 'errors and omissions' (E&O) insurance designed to protect a travel agency from?
- Employee theft
- Claims by clients alleging financial loss due to the agency's professional mistakes or negligence (Correct answer)
- Natural disaster damage to the office
- Supplier default or bankruptcy
Correct answer: Claims by clients alleging financial loss due to the agency's professional mistakes or negligence
E&O (professional liability) insurance protects a travel agency if a client sues because of a mistake, error, or omission in the booking process that caused financial harm.
Question 4: When a cruise line or airline ceases operations and a client loses their prepaid booking, which insurance benefit is relevant?
- Medical evacuation
- Default/supplier insolvency coverage (Correct answer)
- Baggage loss
- Travel delay
Correct answer: Default/supplier insolvency coverage
Default or financial insolvency coverage reimburses travelers for prepaid, non-refundable costs when a supplier ceases operations before or during the trip.
Question 5: A client whose checked luggage is delayed for 12 hours can claim under which travel insurance benefit?
- Trip interruption
- Baggage delay (Correct answer)
- Baggage loss
- Travel delay
Correct answer: Baggage delay
Baggage delay coverage reimburses travelers for essential items (clothing, toiletries) they must purchase while waiting for delayed luggage to arrive.
Question 6: Which traveler would MOST benefit from purchasing an 'annual multi-trip' travel insurance policy?
- A retiree taking one international trip per year
- A business traveler who takes 8–10 international trips annually (Correct answer)
- A family taking a single cruise vacation
- A student studying abroad for one semester
Correct answer: A business traveler who takes 8–10 international trips annually
An annual multi-trip policy is cost-effective for frequent travelers who take multiple trips per year, as it covers all trips within a 12-month period for one premium.
CTC CTC Travel Insurance & Risk Management 2
Which U.S. government program should travel counselors recommend clients enroll in before international travel for emergency notification purposes?