TICO Module 5 Questions With Complete Solution

TICO Module 5 Questions With Complete Solution Section 52 of the Regulation - CORRECT ANSWER 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 : - CORRECT ANSWER 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: - CORRECT ANSWER receive compensation from the Fund. True or False: Consumers do not have to live in Ontario to be covered by the Fund. - CORRECT ANSWER 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: - CORRECT ANSWER 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 - CORRECT ANSWER TICO has the legal right to borrow money to supplement the Fund. Section 70 of the Regulation - CORRECT ANSWER 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: - CORRECT ANSWER 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 - CORRECT ANSWER 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: - CORRECT ANSWER Travel Industry Compensation Fund. Contributions to the Fund must be made : - CORRECT ANSWER 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 : - CORRECT ANSWER 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: - CORRECT ANSWER certified for accuracy by the registrant or an authorized officer or partner of the registrant. Standard Claim - CORRECT ANSWER 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? - CORRECT ANSWER A customer, a travel agent or a travel wholesaler Trip Completion Expense Claim - CORRECT ANSWER 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 - CORRECT ANSWER A customer or a travel agent Section 56 of the Regulation - CORRECT ANSWER 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 - CORRECT ANSWER 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 - CORRECT ANSWER 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 - CORRECT ANSWER 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 - CORRECT ANSWER 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