TICO Travel Compensation Fund 4 — Questions and Answers
Question 1: Under TICO regulations, what is the maximum amount a single consumer can claim from the Travel Compensation Fund?
- $5,000
- $10,000 (Correct answer)
- $7,500
- $15,000
Correct answer: $10,000
The Travel Compensation Fund caps individual consumer claims at $10,000 per person.
Question 2: Which of the following situations would NOT qualify a consumer for a Travel Compensation Fund claim?
- A TICO-registered agency ceases operations before travel occurs
- A consumer's flight is delayed by 6 hours due to weather (Correct answer)
- A registrant fails to remit consumer funds to a supplier
- A registrant becomes insolvent while holding consumer deposits
Correct answer: A consumer's flight is delayed by 6 hours due to weather
Weather-related flight delays are an airline operational issue, not a registrant insolvency event covered by the Fund.
Question 3: How does the Travel Compensation Fund treat claims when total valid claims exceed the available fund balance?
- Claims are paid in full on a first-come, first-served basis
- Claims are denied until the fund is replenished
- Claims are paid on a pro-rata basis proportional to each claim's value (Correct answer)
- Claims are limited to registrants with the highest consumer volume
Correct answer: Claims are paid on a pro-rata basis proportional to each claim's value
When the Fund is insufficient to cover all claims, payments are distributed pro-rata so each claimant receives a proportional share.
Question 4: A consumer books a vacation package through a TICO registrant and pays in full. The registrant collapses financially. Which document is most important for the consumer to submit with their claim?
- Their passport copy
- Proof of payment such as a receipt or bank statement (Correct answer)
- A travel insurance policy number
- The airline's confirmation email only
Correct answer: Proof of payment such as a receipt or bank statement
Proof of payment is essential to demonstrate the consumer's financial loss when filing a Travel Compensation Fund claim.
Question 5: What role does TICO play after a registrant's collapse triggers Travel Compensation Fund claims?
- TICO acts as a travel agent to rebook all affected travelers
- TICO administers the claims process and distributes Fund payments (Correct answer)
- TICO files a lawsuit against the registrant on behalf of consumers
- TICO reimburses airlines and hotels directly without consumer involvement
Correct answer: TICO administers the claims process and distributes Fund payments
TICO administers the claims process, reviews submissions, and authorizes Fund disbursements to eligible consumers.
Question 6: A travel agent working as an independent contractor under a TICO-registered host agency fails to forward a client's cruise deposit to the cruise line. Can the client claim from the Travel Compensation Fund?
- No, because independent contractors are personally liable
- Yes, because the registered host agency is responsible for the registrant's obligations (Correct answer)
- No, because cruise deposits are excluded from Fund coverage
- Yes, but only if the independent contractor holds a personal TICO registration
Correct answer: Yes, because the registered host agency is responsible for the registrant's obligations
The host agency, as the TICO registrant of record, bears responsibility, making the consumer eligible for a Fund claim.
Question 7: What is the filing deadline for a consumer to submit a claim to the Travel Compensation Fund after a registrant's failure is announced?
- 30 days
- 6 months (Correct answer)
- 1 year
- 2 years
Correct answer: 6 months
Consumers generally have 6 months from the date of the registrant's failure announcement to file a claim with the Travel Compensation Fund.
TICO Travel Compensation Fund 4
Under TICO regulations, what is the maximum amount a single consumer can claim from the Travel Compensation Fund?