TICO Module #5 Exam Questions with
100% Correct Answers7
What makes up the Fund? - ANSWERS-Contributions made by registrants
Any money borrowed under this or an earlier Regulation
Recoveries of money paid from the Fund
Income earned on the money in the Fund.
What circumstances must the registrant reimburse the Fund for any claims paid to the
registrant's client? - ANSWERS-Registrant is bankrupt or insolvent or has ceased to carry on
business
Registrant purchased travel services on the clients behalf, extending credit to the client, and the
client paid the registrant for the services, after the supplier of the services became bankrupt or
insolvent or ceased to carry on business.
What are the 2 possible types of claims on the Fund? - ANSWERS-1. Standard Claim; For services
that were paid for but weren't provided as a result of a failure of an Ontario-registered agent or
wholesaler or airline or cruise line. Clients, agents or wholesalers may make a standard claim.
2. Trip Completion Expense Claim; A claim reasonable expenses incurred to complete a trip
where a client or another person began a trip they cannot complete due to services not being
provided as the result of the failure of a TICO registrant. Clients, or agents may make a trip
completion expense claim.
What reasons may a claim be made against the Fund for the non-provision of the services? -
ANSWERS-Bankruptcy or insolvency of a registrant
Failure of an airline or cruise line end supplier.
, When can a Travel Agent make a claim on the Fund? - ANSWERS-*If the Following Requirements
are Met*
1. Client must have booked and paid for the services through an Ontario-registered travel
agency
2. The agent must have dealt with a registered wholesaler, an airline or cruise line in good faith
and at arm's length
3. The agent has either; Refunded the client, Provided alternative services for the client because
the original services weren't provided because of a registrant or airline or cruise line failure
4. Its clear that the client would have an eligible claim against the Fund.
When can a Travel Wholesaler make a claim on the Fund for money it had paid out too? -
ANSWERS-Reimburse a client for services paid for but weren't provided
Provide the client with services for which the wholesaler hasn't been paid yet by the agent
**However, such a claim applies only if;
The agent is a registrant
The wholesaler dealt with the agent in good faith and at arms length
The agent failed to pass all or part of the client's money to the wholesaler
The wholesaler has had no previous dealings with the agent in which the agent failed to pass
the client's money to the wholesaler
The wholesaler has taken reasonable measures to ensure that the agent is reliable and
financially responsible
The agent received the client's money and it's clear that the client would otherwise have has a
claim against the Fund.
Claims on the Fund are limited to what? - ANSWERS-A maximum refund is $5000 pp
Maximum payable for claims for reimbursement or immediate departure in response to any
single event or major event is $5 Million, plus any money TICO can recover from any third
parties
100% Correct Answers7
What makes up the Fund? - ANSWERS-Contributions made by registrants
Any money borrowed under this or an earlier Regulation
Recoveries of money paid from the Fund
Income earned on the money in the Fund.
What circumstances must the registrant reimburse the Fund for any claims paid to the
registrant's client? - ANSWERS-Registrant is bankrupt or insolvent or has ceased to carry on
business
Registrant purchased travel services on the clients behalf, extending credit to the client, and the
client paid the registrant for the services, after the supplier of the services became bankrupt or
insolvent or ceased to carry on business.
What are the 2 possible types of claims on the Fund? - ANSWERS-1. Standard Claim; For services
that were paid for but weren't provided as a result of a failure of an Ontario-registered agent or
wholesaler or airline or cruise line. Clients, agents or wholesalers may make a standard claim.
2. Trip Completion Expense Claim; A claim reasonable expenses incurred to complete a trip
where a client or another person began a trip they cannot complete due to services not being
provided as the result of the failure of a TICO registrant. Clients, or agents may make a trip
completion expense claim.
What reasons may a claim be made against the Fund for the non-provision of the services? -
ANSWERS-Bankruptcy or insolvency of a registrant
Failure of an airline or cruise line end supplier.
, When can a Travel Agent make a claim on the Fund? - ANSWERS-*If the Following Requirements
are Met*
1. Client must have booked and paid for the services through an Ontario-registered travel
agency
2. The agent must have dealt with a registered wholesaler, an airline or cruise line in good faith
and at arm's length
3. The agent has either; Refunded the client, Provided alternative services for the client because
the original services weren't provided because of a registrant or airline or cruise line failure
4. Its clear that the client would have an eligible claim against the Fund.
When can a Travel Wholesaler make a claim on the Fund for money it had paid out too? -
ANSWERS-Reimburse a client for services paid for but weren't provided
Provide the client with services for which the wholesaler hasn't been paid yet by the agent
**However, such a claim applies only if;
The agent is a registrant
The wholesaler dealt with the agent in good faith and at arms length
The agent failed to pass all or part of the client's money to the wholesaler
The wholesaler has had no previous dealings with the agent in which the agent failed to pass
the client's money to the wholesaler
The wholesaler has taken reasonable measures to ensure that the agent is reliable and
financially responsible
The agent received the client's money and it's clear that the client would otherwise have has a
claim against the Fund.
Claims on the Fund are limited to what? - ANSWERS-A maximum refund is $5000 pp
Maximum payable for claims for reimbursement or immediate departure in response to any
single event or major event is $5 Million, plus any money TICO can recover from any third
parties
