TICO Module 5 Exam Questions and Answers (Graded A)

TICO Module 5 Exam Questions and Answers (Graded A) TICO Module 5 Exam Questions and Answers (Graded A) TICO Module 5 Exam Questions and Answers (Graded A) Section 52 of the Regulation - 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 : - 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: - ANSWER-receive compensation from the Fund. True or False: Consumers do not have to live in Ontario to be covered by the Fund. - 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: - 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 - ANSWER-TICO has the legal right to borrow money to supplement the Fund. Section 70 of the Regulation - 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: - 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 - 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: - ANSWER-Travel Industry Compensation Fund. Contributions to the Fund must be made : - 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 : - 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: - ANSWER-certified for accuracy by the registrant or an authorized officer or partner of the registrant.