TICO Module #5 Questions With complete Solution

TICO Module #5 Questions With complete Solution What makes up the Fund? - CORRECT ANSWER 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? - CORRECT ANSWER 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? - CORRECT ANSWER 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? - CORRECT ANSWER 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? - CORRECT ANSWER *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? - CORRECT ANSWER 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? - CORRECT ANSWER 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 If all claims exceed $5 Million, TICO will prorate the claims it receives Additional $2 Million may be paid from the Fund for trip completion to assist travelers who are stranded in a destination. Trip completion includes payments directed by the Director from trip completion and claims for the trip completion expenses approved by the Board. If $2 Million isn't enough to cover the cost, the Director may call for additional funds to be used for trip completion. These additional funds cannot exceed $5 Million. As well, these funds will be deducted from the $5 Million available to reimburse clients for immediate departures because of the event in question Payments for trip completion take precedence over other claims on the Fund.