TICO Travel Compensation Fund 5

Question 1

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

Accepted Answer

Airline tickets purchased directly from the airline's own website

Answer

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

Question 2

How are contributions to the Travel Compensation Fund primarily collected?

Accepted Answer

Through annual registration fees paid by TICO registrants

Answer

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

Question 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?

Accepted Answer

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

Answer

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

Question 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?

Accepted Answer

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

Answer

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.

Question 5

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

Accepted Answer

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

Answer

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

TICO - Travel Industry Council of Ontario Practice Test

TICO - Travel Industry Council of Ontario Practice Test

TICO Travel Compensation Fund 5