TICO Ontario Regulation 26/05 4

Question 1

Under Ontario Regulation 26/05, what is the minimum amount of errors and omissions insurance a registered travel agent must carry?

Accepted Answer

$1,000,000 per occurrence

Answer

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?

Accepted Answer

As soon as reasonably possible after learning of the change

Answer

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?

Accepted Answer

Receiving a deposit for a future travel package

Answer

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?

Accepted Answer

The wholesaler who produces the materials

Answer

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?

Accepted Answer

Refund the consumer within 30 days

Answer

When travel services are not provided, the agent must return consumer funds held in trust promptly, generally within 30 days.

TICO - Travel Industry Council of Ontario Practice Test

TICO - Travel Industry Council of Ontario Practice Test

TICO Ontario Regulation 26/05 4