TICO Travel Compensation Fund 2

Question 1

Which of the following consumers would be eligible to make a claim to the Travel Compensation Fund (TCF)?

Accepted Answer

An Ontario resident who paid a TICO-registered travel agent for a package and the agent became insolvent before travel

Answer

The TCF is available to consumers who suffer losses when a TICO-registered travel agent or wholesaler becomes insolvent.

Question 2

The Travel Compensation Fund (TCF) is funded primarily through:

Accepted Answer

Annual levies paid by all TICO-registered travel agents and wholesalers based on their sales volume

Answer

The TCF is funded by annual levies paid by TICO registrants, calculated based on their Ontario travel sales.

Question 3

The Travel Compensation Fund (TCF) covers losses arising from which specific event?

Accepted Answer

The financial insolvency of a TICO-registered travel agent or travel wholesaler

Answer

The TCF specifically covers losses arising from the financial insolvency of a TICO-registered travel agent or wholesaler — not supplier bankruptcies or travel disruptions.

Question 4

Before filing a claim with the Travel Compensation Fund, what must a consumer do first?

Accepted Answer

Attempt to obtain a refund through all other available means, including credit card chargebacks and travel insurance claims

Answer

The TCF is a last-resort fund. Consumers must first pursue all other available remedies such as credit card chargebacks and travel insurance before the TCF will consider their claim.

Question 5

A consumer paid a TICO-registered agency $8,000 for a family vacation package. The agency became insolvent. The consumer received $2,000 back through a credit card chargeback. How much can the consumer claim from the TCF?

Accepted Answer

Up to $6,000 (the unrecovered portion), subject to the TCF's maximum claim limit

Answer

The TCF covers the unrecovered portion of the consumer's loss — in this case, up to $6,000 — after credit card chargebacks are applied, subject to the TCF's maximum per-claim limit.

TICO - Travel Industry Council of Ontario Practice Test

TICO - Travel Industry Council of Ontario Practice Test

TICO Travel Compensation Fund 2