CTC Travel Insurance & Risk Management 2

Question 1

Which type of travel insurance policy is most cost-effective for a client who takes four or more international trips per year?

Accepted Answer

An annual or multi-trip policy covering all trips within 12 months

Answer

An annual or multi-trip policy covers all trips taken within a 12-month period under one premium, making it far more economical for frequent travelers than purchasing individual single-trip policies.

Question 2

How does 'trip interruption' insurance differ from 'trip cancellation' insurance?

Accepted Answer

Trip interruption covers events that cut a trip short after departure has already begun

Answer

Trip interruption insurance reimburses unused, non-refundable trip costs and extra expenses incurred when a covered event forces the traveler to cut their trip short and return home early.

Question 3

Which type of travel insurance coverage protects the traveler's financial investment if the airline, cruise line, or tour operator goes out of business before or during the trip?

Accepted Answer

Default or financial insolvency coverage

Answer

Default or financial insolvency coverage protects travelers when a travel supplier ceases operations, reimbursing prepaid costs that would otherwise be lost due to supplier bankruptcy.

Question 4

Which of the following scenarios would most likely be covered under standard baggage insurance?

Accepted Answer

A traveler's camera stolen from a hotel room during the trip

Answer

Standard baggage insurance covers the loss, theft, or damage of personal belongings during the covered trip, including items stolen from accommodations in most policies.

Question 5

Which traveler would most clearly benefit from purchasing an 'adventure sports' or 'hazardous activities' rider on their travel insurance policy?

Accepted Answer

A traveler planning to go bungee jumping and white-water rafting in New Zealand

Answer

Standard travel insurance typically excludes injuries sustained during high-risk or extreme activities; an adventure sports rider extends coverage to include these activities explicitly.

(CTC) Certified Travel Consultant Practice Test

(CTC) Certified Travel Consultant Practice Test

CTC Travel Insurance & Risk Management 2