TICO Travel Insurance Obligations — Questions and Answers
Question 1: Under TICO's standards, when must a travel registrant inform a client about the availability of travel insurance?
- Only when the client specifically requests information about insurance
- Only for international travel bookings exceeding $2,000
- At the time of booking, as part of the registrant's duty to advise the client (Correct answer)
- Only after the client has signed the booking contract
Correct answer: At the time of booking, as part of the registrant's duty to advise the client
TICO's duty-to-advise standard requires registrants to proactively inform clients about the availability of travel insurance at the time of booking. Waiting for the client to ask, or doing so only after signing, does not satisfy this obligation.
Question 2: A client declines travel insurance after being properly advised by their travel agent. What should the agent do to protect themselves from a future complaint?
- Nothing — once the client verbally declines, the agent's duty is fully satisfied
- Refuse to complete the booking until the client purchases insurance
- Document in the client file that insurance was offered and the client declined (Correct answer)
- Contact the insurer and report the client's refusal
Correct answer: Document in the client file that insurance was offered and the client declined
Best practice under TICO standards is to document in the client's file that travel insurance was offered and that the client declined. This protects the registrant if a complaint is filed later alleging they were never informed of insurance options.
Question 3: Which type of travel insurance coverage is of particular importance for TICO registrants to bring to every client's attention?
- Home and auto bundle coverage
- Out-of-province/out-of-country emergency medical coverage (Correct answer)
- Pet travel insurance
- Employer group life insurance
Correct answer: Out-of-province/out-of-country emergency medical coverage
Out-of-province and out-of-country emergency medical coverage is critical for travellers, as provincial health plans provide very limited coverage outside Canada. TICO registrants are expected to specifically advise clients about this risk.
Question 4: A client suffered a serious medical emergency abroad and incurred $80,000 in hospital bills. They later claimed their travel agent never told them to buy travel insurance. If proven, what could the registrant face?
- No consequences, because insurance is the client's personal responsibility
- A TICO complaint for failing to meet the duty to advise, and potential civil liability (Correct answer)
- Only a verbal warning from TICO, with no further action possible
- Automatic revocation of their TICO registration
Correct answer: A TICO complaint for failing to meet the duty to advise, and potential civil liability
A registrant who fails to advise a client about travel insurance risks a TICO complaint for breach of their duty to advise, and may also face civil liability if the client suffered financial harm as a result. Automatic revocation would not occur without a formal process.
Question 5: Which of the following statements about travel insurance is CORRECT under TICO's operational standards?
- Registrants are required to sell travel insurance as part of every booking
- Registrants must advise clients about the availability of travel insurance, but cannot be compelled to sell a specific policy (Correct answer)
- Travel insurance obligations only apply to air-inclusive packages
- Registrants are prohibited from selling third-party travel insurance products
Correct answer: Registrants must advise clients about the availability of travel insurance, but cannot be compelled to sell a specific policy
TICO registrants are obligated to advise clients that travel insurance is available, but they are not required to force clients to purchase it, nor are they restricted to a specific insurer. The obligation is disclosure and advice, not mandatory sale.
Question 6: A registrant sells a cruise package but does not mention travel insurance because the cruise line includes a basic cancellation waiver. Has the registrant met their TICO insurance advisory obligation?
- Yes, because the supplier's cancellation waiver replaces the need for third-party insurance
- Yes, as long as the cruise line waiver covers medical emergencies
- No, because a supplier's cancellation waiver is not a substitute for comprehensive travel insurance advice (Correct answer)
- No, but only if the booking exceeds $5,000
Correct answer: No, because a supplier's cancellation waiver is not a substitute for comprehensive travel insurance advice
A supplier's limited cancellation waiver does not substitute for comprehensive travel insurance, particularly emergency medical coverage. The registrant must still advise the client about the availability of full travel insurance coverage regardless of any supplier-provided protection.
TICO Travel Insurance Obligations
Under TICO's standards, when must a travel registrant inform a client about the availability of travel insurance?