TICO Module 5 Exam Questions with
Complete Solutions20
Section 52 of the Regulation - ANSWERS-Purpose of the travel Industry compensation Fund
The purpose of the Travel Industry Compensation Fund (usually referred to simply as the
Compensation Fund, or the Fund) is to : - ANSWERS-protect consumers who purchase travel
services from Ontario-registered retailers.
If travel services cannot be provided because of the financial failure of a registrant or an airline
or cruise line end supplier, then a consumer may be eligible to: - ANSWERS-receive
compensation from the Fund.
True or False: Consumers do not have to live in Ontario to be covered by the Fund. - ANSWERS-
True. As long as consumers purchase travel services from an Ontario registered travel agency,
they are protected by the Compensation Fund in the event that they do not receive their travel
services as a result of the failure of an Ontario registered travel retailer, an Ontario registered
travel wholesaler or an airline or cruise line.
The Fund is made up of: - ANSWERS-contributions made by registrants
any money borrowed under this or an earlier Regulation
recoveries of money paid from the Fund; and
income earned on the money in the Fund.
Section 72 of the Regulation - ANSWERS-TICO has the legal right to borrow money to
supplement the Fund.
,Section 70 of the Regulation - ANSWERS-A registrant is required to reimburse the Fund for any
claims paid to the registrant's customers under certain circumstances
A registrant is required to reimburse the Fund for any claims paid to the registrant's customers
under the following circumstances: - ANSWERS-the registrant is bankrupt or insolvent or has
ceased to carry on business; or the registrant purchased travel services on the customer's
behalf, extending credit to the customer, and the customer paid the registrant for the travel
services after the supplier of the travel services had become bankrupt or insolvent or ceased to
carry on business.
claimant - ANSWERS-someone who officially makes a claim to a benefit or right. In the case of
the Travel Industry Compensa-tion Fund, they are someone who wishes to be paid back
("reimbursed") for what he or she spent on a travel service but did not receive or someone who
wish-es to be reimbursed for rea-sonable expenses incurred to complete a trip.
A travel agent or travel wholesaler must contribute to the: - ANSWERS-Travel Industry
Compensation Fund.
Contributions to the Fund must be made : - ANSWERS-twice a year (at a six-month interval),
with each payment based on the company's gross sales in Ontario.
When registrants make payments to the Fund, each payment must be accompanied by : -
ANSWERS-a completed return that shows the registrant's sales in Ontario for the preceding
fiscal half-year and the amount owing to TICO.
Registrant returns must be: - ANSWERS-certified for accuracy by the registrant or an authorized
officer or partner of the registrant.
Standard Claim - ANSWERS-is a claim for travel services that were paid for but not provided as a
result of the failure of an Ontario-registered travel agent, an Ontario-registered travel
wholesaler or an airline or cruise line.
, Who can make a standard claim? - ANSWERS-A customer, a travel agent or a travel wholesaler
Trip Completion Expense Claim - ANSWERS-claim for reason-able expenses incurred to complete
a trip where a customer or another person has begun a trip that cannot be com-pleted because
travel services have not been provided as the result of the failure of a TICO registrant.
Who can make a trip completion expense claim - ANSWERS-A customer or a travel agent
Section 56 of the Regulation - ANSWERS-The TICO Board of Directors is responsible for
determining whether all or part of a claim is eligible for reimbursement. The Board is also
responsible for deciding on the eligible amount of a claim.
Section 72 of the Regulation, Administration of the compensation Fund - ANSWERS-TICO may
borrow money to supplement the Compensation Fund. If the Fund has more money than what
it needs to meet TICO's immediate needs, TICO can invest funds in authorized investments
Section 74 of the Regulation - ANSWERS-TICO's Board of Directors may retain the services of
experts or advisors, such as legal counsel, accountants, staff, or trade associations, to:
administer and manage the Fund; investigate claims; and maintain and protect the Fund. The
Fund may be used to pay these individuals for their services.
Section 73 of the Regulation - ANSWERS-To ensure that the Fund is properly managed, the
Director can request from the Fund administrators any information, books, records, or
documents related to the Fund.
Section 75 of the Regulation - ANSWERS-The Director can also request an audit of the affairs of
the Fund. If that happens, the TICO Board must assist the auditors and provide any information
they require
Complete Solutions20
Section 52 of the Regulation - ANSWERS-Purpose of the travel Industry compensation Fund
The purpose of the Travel Industry Compensation Fund (usually referred to simply as the
Compensation Fund, or the Fund) is to : - ANSWERS-protect consumers who purchase travel
services from Ontario-registered retailers.
If travel services cannot be provided because of the financial failure of a registrant or an airline
or cruise line end supplier, then a consumer may be eligible to: - ANSWERS-receive
compensation from the Fund.
True or False: Consumers do not have to live in Ontario to be covered by the Fund. - ANSWERS-
True. As long as consumers purchase travel services from an Ontario registered travel agency,
they are protected by the Compensation Fund in the event that they do not receive their travel
services as a result of the failure of an Ontario registered travel retailer, an Ontario registered
travel wholesaler or an airline or cruise line.
The Fund is made up of: - ANSWERS-contributions made by registrants
any money borrowed under this or an earlier Regulation
recoveries of money paid from the Fund; and
income earned on the money in the Fund.
Section 72 of the Regulation - ANSWERS-TICO has the legal right to borrow money to
supplement the Fund.
,Section 70 of the Regulation - ANSWERS-A registrant is required to reimburse the Fund for any
claims paid to the registrant's customers under certain circumstances
A registrant is required to reimburse the Fund for any claims paid to the registrant's customers
under the following circumstances: - ANSWERS-the registrant is bankrupt or insolvent or has
ceased to carry on business; or the registrant purchased travel services on the customer's
behalf, extending credit to the customer, and the customer paid the registrant for the travel
services after the supplier of the travel services had become bankrupt or insolvent or ceased to
carry on business.
claimant - ANSWERS-someone who officially makes a claim to a benefit or right. In the case of
the Travel Industry Compensa-tion Fund, they are someone who wishes to be paid back
("reimbursed") for what he or she spent on a travel service but did not receive or someone who
wish-es to be reimbursed for rea-sonable expenses incurred to complete a trip.
A travel agent or travel wholesaler must contribute to the: - ANSWERS-Travel Industry
Compensation Fund.
Contributions to the Fund must be made : - ANSWERS-twice a year (at a six-month interval),
with each payment based on the company's gross sales in Ontario.
When registrants make payments to the Fund, each payment must be accompanied by : -
ANSWERS-a completed return that shows the registrant's sales in Ontario for the preceding
fiscal half-year and the amount owing to TICO.
Registrant returns must be: - ANSWERS-certified for accuracy by the registrant or an authorized
officer or partner of the registrant.
Standard Claim - ANSWERS-is a claim for travel services that were paid for but not provided as a
result of the failure of an Ontario-registered travel agent, an Ontario-registered travel
wholesaler or an airline or cruise line.
, Who can make a standard claim? - ANSWERS-A customer, a travel agent or a travel wholesaler
Trip Completion Expense Claim - ANSWERS-claim for reason-able expenses incurred to complete
a trip where a customer or another person has begun a trip that cannot be com-pleted because
travel services have not been provided as the result of the failure of a TICO registrant.
Who can make a trip completion expense claim - ANSWERS-A customer or a travel agent
Section 56 of the Regulation - ANSWERS-The TICO Board of Directors is responsible for
determining whether all or part of a claim is eligible for reimbursement. The Board is also
responsible for deciding on the eligible amount of a claim.
Section 72 of the Regulation, Administration of the compensation Fund - ANSWERS-TICO may
borrow money to supplement the Compensation Fund. If the Fund has more money than what
it needs to meet TICO's immediate needs, TICO can invest funds in authorized investments
Section 74 of the Regulation - ANSWERS-TICO's Board of Directors may retain the services of
experts or advisors, such as legal counsel, accountants, staff, or trade associations, to:
administer and manage the Fund; investigate claims; and maintain and protect the Fund. The
Fund may be used to pay these individuals for their services.
Section 73 of the Regulation - ANSWERS-To ensure that the Fund is properly managed, the
Director can request from the Fund administrators any information, books, records, or
documents related to the Fund.
Section 75 of the Regulation - ANSWERS-The Director can also request an audit of the affairs of
the Fund. If that happens, the TICO Board must assist the auditors and provide any information
they require
