TICO Ontario Regulation 26/05 4 — Questions and Answers
Question 1: Under Ontario Regulation 26/05, what is the minimum amount of errors and omissions insurance a registered travel agent must carry?
- $500,000 per occurrence
- $1,000,000 per occurrence (Correct answer)
- $2,000,000 per occurrence
- $250,000 per occurrence
Correct answer: $1,000,000 per occurrence
Ontario Regulation 26/05 requires registered travel agents to maintain a minimum of $1,000,000 per occurrence in errors and omissions insurance.
Question 2: Under Ontario Regulation 26/05, when must a travel agent provide a written disclosure of material changes to a consumer?
- Within 48 hours of learning of the change
- As soon as reasonably possible after learning of the change (Correct answer)
- At least 7 days before departure
- Only if the consumer requests it in writing
Correct answer: As soon as reasonably possible after learning of the change
The Regulation requires the agent to notify the consumer of material changes as soon as reasonably possible after the agent becomes aware of them.
Question 3: Which of the following transactions requires a travel agent to deposit consumer funds into a trust account under Ontario Regulation 26/05?
- Booking a domestic hotel directly for same-day check-in
- Receiving a deposit for a future travel package (Correct answer)
- Processing a corporate credit-card expense report
- Issuing a refund to a consumer
Correct answer: Receiving a deposit for a future travel package
Funds received from consumers for future travel must be held in trust until the travel services are provided or the funds are remitted to the supplier.
Question 4: Under Ontario Regulation 26/05, which party is responsible for ensuring that a travel wholesaler's marketing materials comply with the disclosure requirements?
- The travel agent who distributes the materials
- The wholesaler who produces the materials (Correct answer)
- TICO's compliance department
- The Ministry of Consumer Services
Correct answer: The wholesaler who produces the materials
The wholesaler is primarily responsible for ensuring that any marketing materials they produce comply with the disclosure requirements under the Regulation.
Question 5: A travel agent sells a cruise package but the cruise line cancels the sailing 10 days before departure. Under Ontario Regulation 26/05, what must the travel agent do with the consumer's funds held in trust?
- Retain the funds until the consumer selects an alternative
- Refund the consumer within 30 days (Correct answer)
- Transfer the funds to the travel wholesaler immediately
- Wait for the cruise line to issue a credit before acting
Correct answer: Refund the consumer within 30 days
When travel services are not provided, the agent must return consumer funds held in trust promptly, generally within 30 days.
Question 6: Under Ontario Regulation 26/05, which document must be given to a consumer at or before the time of the final payment for travel services?
- A TICO registration certificate
- A written contract or receipt containing prescribed information (Correct answer)
- A consumer complaint form
- A credit-check authorization form
Correct answer: A written contract or receipt containing prescribed information
The Regulation requires registrants to provide a written contract or receipt containing all prescribed information no later than the time of final payment.
Question 7: Ontario Regulation 26/05 defines a 'material change' to include which of the following?
- A change in the in-flight meal service
- A change in the destination country (Correct answer)
- A minor schedule adjustment of less than one hour
- A change in the assigned seat on the aircraft
Correct answer: A change in the destination country
A change in the destination country is a significant alteration to the travel product and qualifies as a material change under the Regulation.
TICO Ontario Regulation 26/05 4
Under Ontario Regulation 26/05, what is the minimum amount of errors and omissions insurance a registered travel agent must carry?