Practice Test GeeksTICO - Travel Industry Council of Ontario Practice Test
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Travel Compensation Fund Flashcards

7 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 7 Travel Compensation Fund flashcards as text

  1. Which type of travel purchase is specifically EXCLUDED from Travel Compensation Fund coverage?

    Answer: Airline tickets purchased directly from the airline's own website

    Purchases made directly from airlines or other suppliers—not through a TICO registrant—fall outside the Fund's scope.

  2. How are contributions to the Travel Compensation Fund primarily collected?

    Answer: Through annual registration fees paid by TICO registrants

    TICO registrants pay annual registration and renewal fees, a portion of which funds the Travel Compensation Fund.

  3. A consumer paid a $4,000 deposit for a European river cruise. The travel agency went bankrupt before departure. The consumer also had a $500 trip-cancellation insurance policy. What amount can they claim from the Travel Compensation Fund?

    Answer: Nothing — insurance must pay first and the Fund is a last resort

    The Travel Compensation Fund operates as a last resort; consumers must first exhaust insurance and credit card chargebacks before a Fund claim is accepted.

  4. A group of 12 travelers all booked through the same collapsed TICO registrant. Each traveler lost $8,000. What is the maximum total the group can collectively recover from the Travel Compensation Fund?

    Answer: $80,000 — the $10,000 per-person cap applies individually to each

    Each traveler is entitled to up to $10,000 individually, so 12 travelers can collectively claim up to $120,000 — but since their loss is only $8,000 each, they recover $96,000 total.

  5. Which best describes the Travel Compensation Fund's relationship to TICO's Errors & Omissions insurance requirement?

    Answer: E&O insurance protects consumers from agent negligence; the Fund covers registrant insolvency

    E&O insurance covers professional mistakes and negligence, while the Travel Compensation Fund specifically addresses registrant financial collapse.

  6. After TICO receives a Travel Compensation Fund application, what is a mandatory step before any payment is issued?

    Answer: TICO verifies the claimant booked through a TICO-registered seller and confirms the loss

    TICO must verify registration status and the legitimacy of the financial loss before authorizing any Fund disbursement.

  7. A consumer books a domestic Ontario trip through a TICO registrant. The registrant ceases operations two weeks before the trip. The consumer rebooks directly with the hotel at a higher rate. Can the consumer claim the price difference from the Travel Compensation Fund?

    Answer: No, the Fund only reimburses the original deposit paid to the registrant, not rebooking premiums

    The Travel Compensation Fund reimburses the consumer's actual loss paid to the failed registrant, not the higher cost of rebooking through another source.