CTC CTC Travel Insurance & Risk Management 1 — Questions and Answers
Question 1: Which travel insurance benefit covers a traveler who must return home early due to a family emergency?
- Trip cancellation
- Trip interruption (Correct answer)
- Medical evacuation
- Baggage loss
Correct answer: Trip interruption
Trip interruption coverage reimburses unused prepaid costs and extra transportation expenses when a traveler must cut a trip short due to a covered reason.
Question 2: A travel counselor's primary duty of care regarding travel insurance is to:
- Purchase insurance on behalf of clients without asking
- Inform clients of available coverage options and document that the discussion occurred (Correct answer)
- Require all clients to purchase insurance before booking
- Select the cheapest available policy for clients
Correct answer: Inform clients of available coverage options and document that the discussion occurred
A CTC must ensure clients are aware of travel insurance options and document that the conversation took place to protect both the client and the agency from future liability.
Question 3: What does 'Cancel For Any Reason' (CFAR) travel insurance allow a policyholder to do?
- Cancel a trip and receive a 100% cash refund
- Cancel a trip for any reason and receive a partial refund (typically 50–75%) not subject to standard policy restrictions (Correct answer)
- Cancel flights but not hotel bookings
- Cancel at any time up to the day of departure
Correct answer: Cancel a trip for any reason and receive a partial refund (typically 50–75%) not subject to standard policy restrictions
CFAR is an optional upgrade that lets travelers cancel for any reason, including non-covered ones, typically receiving 50–75% of prepaid costs as a reimbursement.
Question 4: Which type of travel insurance covers the cost of emergency medical transport to the nearest adequate medical facility or back home?
- Trip cancellation
- Emergency medical evacuation (Correct answer)
- Baggage delay
- Travel delay
Correct answer: Emergency medical evacuation
Emergency medical evacuation coverage pays for medically necessary transportation, which can cost tens of thousands of dollars, especially in remote or international destinations.
Question 5: A 'pre-existing condition exclusion' in travel insurance typically means:
- All medical conditions are covered regardless of history
- Medical conditions that existed before the policy's effective date may not be covered unless a waiver is purchased (Correct answer)
- Only conditions diagnosed after booking are covered
- Pre-existing conditions are always covered under US policies
Correct answer: Medical conditions that existed before the policy's effective date may not be covered unless a waiver is purchased
Most standard travel insurance policies exclude claims related to medical conditions the traveler had before the policy's effective date unless they purchase a pre-existing condition waiver.
Question 6: To qualify for a pre-existing condition waiver on most travel insurance policies, travelers must typically:
- Disclose all conditions to the insurer at time of travel
- Purchase the policy within a specified number of days of their initial trip deposit (Correct answer)
- Obtain a doctor's certificate before departure
- Book directly with the insurance company, not through a travel agent
Correct answer: Purchase the policy within a specified number of days of their initial trip deposit
Most travel insurers require the policy to be purchased within 10–21 days of the initial trip deposit to qualify for the pre-existing condition waiver.
CTC CTC Travel Insurance & Risk Management 1
Which travel insurance benefit covers a traveler who must return home early due to a family emergency?