Travel Compensation Fund Flashcards
6 cards from real TICO practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Travel Compensation Fund flashcards as text
Travel insurance and the Travel Compensation Fund (TCF) both protect consumers but cover different risks. Which of the following best describes how they interact?
Answer: Travel insurance and the TCF cover different risks — insurance covers trip cancellation and medical emergencies, while the TCF covers registrant insolvency
Travel insurance and the TCF cover different risks and work together to provide comprehensive protection.
When a TICO-registered travel agent becomes insolvent, what is TICO's role regarding the Travel Compensation Fund?
Answer: TICO administers the claims process, investigates claims, and determines eligibility for payment from the TCF
TICO administers the TCF claims process, including receiving, investigating, and approving or denying individual consumer claims for compensation.
The Travel Compensation Fund does NOT cover losses arising from which of the following situations?
Answer: A consumer who booked a flight directly with an airline that subsequently went bankrupt
The TCF covers insolvency of TICO registrants only. Airline bankruptcies for direct bookings are not within TICO's TCF scope.
How does paying for travel with a credit card complement the protection offered by the Travel Compensation Fund (TCF)?
Answer: Credit card chargebacks can be used to recover some losses faster than TCF processes, and chargebacks must be pursued before a TCF claim is filed
Credit card chargebacks provide a fast, direct remedy for consumers and must be pursued before a TCF claim. They are typically faster than the TCF claims process.
To file a claim with the Travel Compensation Fund, a consumer must meet which of the following conditions?
Answer: The consumer purchased travel services from a TICO-registered registrant that subsequently became insolvent, and the consumer suffered a financial loss
The primary eligibility conditions are that the consumer purchased from a TICO-registered registrant that became insolvent and the consumer suffered a resulting financial loss.
A TICO registrant is required to maintain financial security (e.g., a bond) as part of their registration. How does this relate to the Travel Compensation Fund?
Answer: The registration financial security and the TCF are separate requirements; both serve as financial safeguards but in different ways
The registration bond and the TCF are separate financial safeguards; the bond is a registration prerequisite while the TCF is a shared industry fund available to consumers in insolvency situations.