CTC Travel Insurance & Risk Management

Question 1

What type of travel insurance coverage reimburses a traveler for prepaid, non-refundable expenses when they must cancel their trip before departure due to a covered reason?

Accepted Answer

Trip cancellation insurance

Answer

Trip cancellation insurance specifically covers prepaid, non-refundable expenses lost when a traveler cancels before departure for a covered reason such as illness or a family emergency.

Question 2

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

Accepted Answer

Changing one's mind about taking the trip

Answer

Standard trip cancellation policies require a specific covered reason; simply changing one's mind is not covered unless the traveler has purchased 'Cancel for Any Reason' (CFAR) coverage.

Question 3

A 'Cancel for Any Reason' (CFAR) add-on typically reimburses what percentage of non-refundable trip costs?

Accepted Answer

50% to 75% of non-refundable costs

Answer

CFAR coverage typically reimburses 50% to 75% of non-refundable trip costs, providing flexibility at the cost of partial reimbursement rather than full coverage.

Question 4

What is the primary purpose of travel medical insurance for US citizens traveling internationally?

Accepted Answer

To provide medical coverage when domestic health insurance does not apply outside the US

Answer

Most US domestic health insurance plans, including Medicare, provide little or no coverage outside the United States, making travel medical insurance essential for international travelers.

Question 5

In travel insurance, a 'pre-existing condition' typically refers to any medical condition that:

Accepted Answer

Existed or required treatment before the policy purchase date

Answer

A pre-existing condition is generally defined as any illness, injury, or medical condition that existed or for which the traveler sought treatment before the policy's effective date.

(CTC) Certified Travel Consultant Practice Test

(CTC) Certified Travel Consultant Practice Test

CTC Travel Insurance & Risk Management