TICO Certification Mock Exam 1

Every question and its answer choices. The correct answers and explanations appear when you take the test above.

1. After selling travel services, what must a travel agent promptly give the customer?

   1. A verbal confirmation by phone, with nothing in writing
   2. A copy of TICO's annual report
   3. Only the airline's e-ticket number
   4. A statement, invoice or receipt with set details

2. After a sale, the agent learns of a change that might have affected the customer's decision. What must the agent do?

   1. Tell the customer only after the trip ends
   2. Report it to TICO and say nothing to the customer
   3. Wait to see if the customer notices the change
   4. Tell the customer promptly

3. Under the Travel Industry Act, what is a travel agent?

   1. An airline that sells seats on its own scheduled flights
   2. A person who owns a hotel and rents its own rooms to visiting tourists
   3. Any person who travels for business more than 30 days a year
   4. Someone who sells consumers travel services supplied by others

4. What must the agent tell the customer about questions?

   1. The agent is required to answer the customer's questions
   2. Questions are answered only after the trip is paid in full
   3. Questions must go to TICO, not the agent
   4. Questions cost an extra counselling fee

5. An agency stops dealing with a wholesaler because the wholesaler seems financially shaky. What must it do?

   1. Ask its customers to vote on the decision
   2. Keep the reason confidential from everyone
   3. Promptly notify the registrar in writing, with reasons
   4. Post a public warning about the wholesaler on social media

6. What may happen when the director designates a failure as a major event?

   1. The $5,000 per-person limit is removed
   2. Payments may be delayed, or paid in instalments or partly
   3. Travel agents must refund all of their customers personally
   4. All claims are paid twice as fast as usual

7. When a registrant offers a refund or alternative under section 40, what must it note in its file?

   1. Only the customer's final decision, with no date
   2. Nothing, because a verbal offer is enough
   3. What was said, the date, the method and the customer's choice
   4. The supplier's explanation and nothing at all about the customer

8. When may an ad show a price for a trip?

   1. At any time, as long as the price is marked as approximate
   2. Whenever at least one seat sold at that price last year
   3. Only if the price is lower than all competitors' prices
   4. Only if the trip is available at that price while the ad runs

9. A registered travel corporation wants to replace one of its directors. What is required?

   1. Nothing, it is an internal matter
   2. Approval of the Licence Appeal Tribunal
   3. A new $10,000 security deposit
   4. The registrar's consent

10. A customer complains the hotel was worse than expected and claims from the Fund. Is the claim eligible?

    1. Yes, up to half of the price paid
    2. No, claims based on cost, value or quality are excluded
    3. Yes, if the customer complains within 30 days of returning
    4. Yes, the Fund covers any disappointing trip

11. Within what time must a prosecution under the Travel Industry Act be started?

    1. Two years after the director first knew the facts
    2. Six months after the customer's trip
    3. Five years after the booking was made
    4. There is no time limit at all for these prosecutions

12. Which statement describes attempts under the current TICO Certification Program?

    1. One attempt only; rewrites are never allowed
    2. A maximum of two attempts in a calendar year
    3. Rewrites are allowed, subject to waits and the six-month enrolment period
    4. No time limits or waiting periods apply to any attempt

13. Where must business records normally be kept?

    1. At the principal place of business or an approved place
    2. Only in a cloud storage service chosen by the registrar
    3. At TICO's office in Mississauga
    4. At the home of any employee who has a key

14. An agent booked a trip on credit and the customer never paid. Can the agent claim from the Fund?

    1. Yes, for the full price of the trip
    2. No, the customer must have paid through it
    3. Yes, but only half of the price
    4. Yes, if the trip was cancelled by TICO itself

15. Which is a ground for the registrar to refuse a travel agent's registration?

    1. The agency's office is outside downtown Toronto
    2. A false statement made in the application
    3. The agency plans to sell only cruise vacations
    4. The owner has never worked in the industry before

16. Which step may the registrar take when handling a complaint?

    1. Publish the customer's name and complaint online
    2. Cancel the customer's trip and keep the deposit
    3. Mediate, warn in writing, or refer it to the discipline committee
    4. Order the registrant to pay the customer triple damages on the spot

17. Which information must the agent disclose before the sale?

    1. The hotel manager's personal phone number and home address
    2. The names of other customers booked on the same flight and hotel
    3. The total price, travel dates and a fair description of the services
    4. The agent's commission and the supplier's profit margin on the trip

18. A customer is entitled to repayment and the exception in Act section 25(2) does not apply. What is an agent or wholesaler’s liability?

    1. Only TICO, through the Compensation Fund in every case
    2. Each agent and wholesaler that got the money, up to what it got
    3. Only the airline or hotel that was to provide the service
    4. Only the agency that took the booking, whatever amount it actually kept

19. The agency sells trip cancellation insurance. What must the invoice say about it?

    1. The customer's medical history
    2. The insurer's annual premium income in Ontario
    3. Whether or not the customer bought it
    4. Nothing, insurance is separate

20. Under the Act, what are travel services?

    1. Any product sold to a person who lives outside Ontario
    2. Transportation or lodging for travellers, and related services
    3. Restaurant meals, museum passes and theatre tickets bought by tourists
    4. Only international flights booked through an agency

21. What does the law say about false, misleading or deceptive statements in travel advertising?

    1. They are allowed in social media posts only
    2. Registrants must not make them in any ad or material
    3. They are allowed if the ad runs for less than one week
    4. They are allowed if the supplier wrote the text

22. A customer paid a registered Ontario agency for a trip, and the agency went bankrupt before the trip. What generally lets the customer claim from the Fund?

    1. Holding a valid passport and a travel insurance policy for the whole trip
    2. Living in Ontario for at least two full years
    3. Booking the trip at least 90 days in advance
    4. Paying via a registered agent, demanding repayment, and not repaid

23. How is the TICO certification exam written?

    1. Online on a computer, with required software and two-camera proctoring
    2. At a college campus during set exam weeks only
    3. On paper at a ServiceOntario centre with an invigilator
    4. Orally, by phone interview with a TICO inspector

24. A registrant does not qualify for the specified government-funded non-profit exemption. What working-capital rule applies?

    1. Liabilities may exceed assets for up to six months
    2. Current assets must be greater than current liabilities
    3. Total assets must exceed $1 million at all times
    4. Cash on hand must equal one month of sales

25. Which insurance must the agent advise the customer about?

    1. Life insurance that names the travel agency as the only beneficiary
    2. Home and auto insurance for while the customer is away
    3. Trip cancellation and, where needed, out-of-province health
    4. Liability insurance covering the hotel's own staff

26. What must a wholesaler have before it sells a supplier's travel services?

    1. An agreement with the supplier with all terms in writing
    2. A verbal promise from the supplier's regional sales manager
    3. A deposit from at least ten customers
    4. Approval from the customer's insurance company

27. Which name must appear on the customer's invoice?

    1. The travel counsellor who made the booking and took the first payment
    2. The airline pilot who will fly the customer on the first flight out
    3. The hotel's general manager at the destination resort
    4. The TICO inspector responsible for the agency's region

28. Besides transport, what else can trip-completion payments cover?

    1. Entertainment and excursions booked at the destination
    2. Necessary accommodation and meals until the trip can be completed
    3. Replacement luggage and new clothing of the traveller's own choice
    4. Compensation for the stress of the cancelled holiday

29. A teacher arranges a curriculum-linked one-day school excursion. Which condition is required for the registration exemption?

    1. When it is curriculum-based, approved and earns the teacher no profit
    2. Whenever all of the students' parents sign a written waiver form in advance
    3. When the school is located outside of Ontario
    4. When the trip is shorter than seven days in total

30. The resort in a package is changed to a different hotel of a lower standard. What must happen?

    1. Only an apology letter from the wholesaler
    2. A partial refund of 10 per cent of the hotel portion of the cost
    3. Notice and a full refund or acceptable alternative offer
    4. Nothing, if the new hotel is in the same city

31. Which price statement is NOT allowed in a travel ad?

    1. "Prices in Canadian dollars"
    2. "Was $1,899, now $1,499"
    3. "$1,499 per person, all taxes included"
    4. "More information from your travel agent"

32. How soon are TICO exam results normally sent?

    1. At the next quarterly TICO board meeting
    2. On screen, the moment the exam ends
    3. Within three business days, by email
    4. Within 30 days, by registered mail

33. For which purpose may a registrant withdraw money from its trust account?

    1. To pay the agency's rent while it waits for supplier commissions
    2. To lend money to a customer for a future booking
    3. To pay the supplier of the travel services the money was for
    4. To cover the owner's salary during a slow month

34. What must the agent tell a customer about living standards at a foreign destination?

    1. They never affect the accommodation offered
    2. They are always equal to Canadian standards
    3. They may differ from those in Canada
    4. They are guaranteed by the travel wholesaler

35. A wholesaler issued travel documents, but the customer has not paid the agent. Which requirement for the protection in section 43 is missing?

    1. A trip longer than one week
    2. The customer’s payment to the agent
    3. An agency with five years of registration
    4. A separate travel-insurance policy

36. What must a wholesaler's statement to a travel agent show?

    1. The agent's commission rate with every other wholesaler it uses
    2. The wholesaler's profit margin on each booking
    3. The payment terms, amount paid and each traveller's destination
    4. The names of all customers of the wholesaler that week

37. A family’s trip cannot be completed because a registered tour operator failed. Assuming claim eligibility, which expense may trip-completion reimbursement cover?

    1. Souvenirs bought during the trip
    2. Lost wages for the extra days away
    3. Transport to their final destination or home
    4. A refund of the whole original trip price

38. When does the rule that no price increases are allowed apply?

    1. After the customer has paid in full
    2. Only for trips inside Canada
    3. Within 60 days of departure
    4. After the first deposit has been paid

39. An ad shows prices without naming a currency. Which currency is it taken to be in?

    1. Canadian dollars
    2. US dollars
    3. Euros
    4. The destination's currency

40. Under which names may a registrant carry on business?

    1. Any name at all, as long as it appears on the customer's invoice
    2. Only the legal name of the owner, never a trade name
    3. Its registered name or an acknowledged business name
    4. Any name that suggests TICO has approved the agency

41. What must be available at every travel agency office throughout its hours of operation?

    1. A licensed travel insurance broker
    2. A printed copy of every supplier's brochure
    3. At least one certified travel counsellor
    4. A TICO inspector or the registrar's designate

42. What applies if a registrant wants a second trust account?

    1. It needs the registrar's written consent in advance
    2. It must close its operating account first
    3. It needs the consent of every customer
    4. It may open as many as it likes without telling anyone

43. A family books a trip to Mexico with a child travelling with one parent. What must the agent advise about before the sale?

    1. The child's school attendance rules and records
    2. Nothing, because documents are entirely the airline's responsibility
    3. Typical documents needed, such as passports and affidavits
    4. Mexican income tax rules for Canadian visitors

44. Under O. Reg. 26/05, what does accommodation NOT include?

    1. Services for the guest's room
    2. Facilities related to the room
    3. Meals
    4. The room itself

45. The registrar serves a notice proposing to revoke an agency's registration. How long does the agency have to request a hearing?

    1. 15 days
    2. 5 days
    3. 90 days
    4. 30 days

46. Which part of a home-based agent's premises may a TICO inspector NOT enter without more authority?

    1. The computer used for bookings
    2. The part used as a dwelling
    3. The business office area
    4. The place where records are kept

47. What records must an agency keep about the people who counsel its customers?

    1. Only their names, kept for one year after they leave
    2. Nothing, because TICO itself keeps all of the certification records
    3. Accurate records, including copies of their TICO certificates
    4. Their personal travel history and passport numbers

48. What must the agent explain about cancelling or transferring the booking?

    1. That all bookings can be cancelled free within 10 days
    2. The range of penalties and any non-refundable payments
    3. Only that cancellations are handled by the supplier
    4. Nothing until the customer actually asks to cancel

49. Which seller may qualify for an exemption if it does not otherwise act as a travel agent or wholesaler?

    1. A website selling cruises to Ontario consumers
    2. A tour operator selling European bus tours
    3. A home-based agent selling Caribbean packages
    4. A business that sells one-day tours

50. A cruise line replaces the booked ship with a different ship. What must the registrant do?

    1. Offer a refund only if the new ship is smaller
    2. Ask TICO to approve the change first
    3. Nothing, as long as the itinerary and ports of call stay the same
    4. Notify and offer a full refund or acceptable alternative

51. Which condition applies to a travel agent that operates from its home?

    1. The agent must hold a real estate licence
    2. The home must be within 10 km of a TICO office or inspector
    3. A listed business phone separate from the home phone
    4. Customers may never visit the home in person

52. The Act contains unproclaimed 2017 amendments renaming roles as travel seller and travel salesperson. What terms apply today?

    1. Travel retailer and travel broker, in force since 2020
    2. Travel counsellor and tour operator, in force since 2026
    3. Travel seller and travel salesperson, which have been in force since 2018
    4. Travel agent and travel wholesaler; the changes are not in force

53. Besides the existence of a counselling fee, what else must the agent disclose about it?

    1. How it compares with fees at other agencies
    2. Whether it is refundable, and in what circumstances
    3. What percentage of it goes to the counsellor personally as pay
    4. Which supplier will reimburse the customer for it

54. For a trip outside Canada, which advice from section 36 must also be recorded on the invoice?

    1. The exchange rate on the day the trip was booked
    2. The customer's preferred seat and meal choices on each of the flights
    3. The information about travel documents and entry given to the customer
    4. A list of restaurants the agent recommends at the destination

55. Is trip completion covered when the failed party is a foreign hotel (an end supplier)?

    1. No, trip completion is not covered for end-supplier failures
    2. Yes, trip completion covers every kind of supplier failure
    3. Yes, but only for trips that began in Ontario
    4. Yes, if the hotel failure lasted more than 48 hours

56. For certain non-accommodation end suppliers under section 2(2)2, which payment arrangement would break the advance-payment condition of the exemption?

    1. Accepting payment by credit card or debit card
    2. Taking over 25% of the price more than 30 days ahead
    3. Selling to customers who live outside of Ontario
    4. Booking more than ten separate tours in any one calendar month

57. A routing change means a traveller needs a new visa and there is no time to get one before departure. What must the registrant offer?

    1. A full refund or a comparable alternative the customer accepts
    2. A refund of only the visa fee the customer already paid
    3. Nothing, because visas are always the traveller's responsibility
    4. A letter asking the embassy to waive the visa requirement

58. The registrar orders an agency to stop a misleading ad and publish a correction. When does the order take effect?

    1. When the agency's registration is renewed
    2. Only after a Licence Appeal Tribunal hearing
    3. After 30 days, if no appeal is filed
    4. Immediately, though the Tribunal may stay it

59. A trip won in a radio contest is cancelled when the agency fails. Can the winner claim from the Fund?

    1. Yes, for the trip's full retail value
    2. Yes, if the radio station was a registered agent
    3. Yes, but only for the taxes on the prize
    4. No, prizes, awards and goodwill trips are excluded

60. Before selling, what must a travel agent disclose about itself to the customer?

    1. Its owner's home address and personal mobile phone number
    2. Its business name, address and phone, and any relevant link to a registrant
    3. Its annual sales volume and the commission it earns from each of its suppliers
    4. The names of all its other customers travelling on the same dates

61. When may a registrant take its commission out of trust money?

    1. As soon as the customer pays the first deposit
    2. Only after the supplier has been paid in full
    3. At the end of each calendar month
    4. Whenever the customer agrees by email

62. What is the total cap on reimbursement and immediate-departure payments for all claims from one event?

    1. $5 million
    2. $20 million
    3. $2 million
    4. $500,000

63. The registrar orders an immediate temporary suspension and the agency requests a hearing. When does the order expire?

    1. Only when the agency's registration is next renewed by the registrar
    2. 30 days after the order is served on the agency
    3. Immediately once the hearing request is mailed
    4. 15 days after the Tribunal receives the request, unless extended

64. When is an officer or director guilty of an offence committed by a travel corporation?

    1. Only if they own more than half of the shares
    2. Never; only the corporation can be charged
    3. Only if they personally signed the false document
    4. If they failed to take reasonable care to prevent it

65. After a refusal to register, when may the person apply again?

    1. After two full years, with no other conditions applying
    2. After 30 days, if there is new evidence or changed circumstances
    3. Immediately, as long as a new application fee is paid
    4. Only after the Licence Appeal Tribunal approves a new application

66. A travel agent refunded a customer after a wholesaler failed. What can the agent recover from the Fund?

    1. Only its counselling fee, but not the customer's money
    2. The portion it passed to the wholesaler, plus commission owing
    3. The full price, plus its counselling fee and its staff costs
    4. Nothing, since agents may never claim from the Fund

67. When the statutory grounds are met, which protective measures are available concerning a registrant’s business or funds?

    1. Order them frozen, or apply to court for a receiver and manager
    2. Transfer them to the registrant's largest competitor
    3. Nothing, since only the customers can act in court
    4. Seize and sell them at once without any order or notice

68. A foreign hotel is the failed end supplier, rather than a failed registrant. Does its bankruptcy qualify for standard Fund reimbursement?

    1. Yes, but only if the hotel had been booked through a wholesaler in Ontario
    2. No, failure of an end supplier other than an airline or cruise line is excluded
    3. Only if the customer paid the full price in cash to the travel agency
    4. Yes, the Fund covers the failure of any supplier anywhere in the world

69. Under Act section 18’s conditional disciplinary framework, what is the stated maximum fine, subject to any lower prescribed amount?

    1. $250,000
    2. $50,000
    3. $5,000
    4. $25,000

70. A wholesaler honours a booking the agent never paid for. Which condition must it meet to claim from the Fund?

    1. It had no prior defaults from that agent and checked it
    2. It must be registered in another province as well
    3. It must have sold the trip at below its usual price
    4. It must have dealt with the agent for at least ten years

71. The contract permits price increases. Which statement must the invoice include?

    1. Prices may rise by any amount at all until departure
    2. No rise after full payment; refund right above 7%, excluding specified tax rises
    3. Customers must accept every increase caused by fuel costs
    4. Increases over 15% must first be approved by TICO

72. An otherwise eligible stranded traveller prefers to go home. What return-cost condition applies to trip-completion reimbursement?

    1. If it costs no more than going to the final destination
    2. Only if a doctor certifies that the traveller is too ill
    3. Only if the traveller is over 65 years old
    4. Never; only onward travel can be paid

73. A contract does NOT permit price increases, but the price goes up by 2 per cent. What applies?

    1. Nothing at all, because 2 per cent is below the 7 per cent limit
    2. The agent may absorb it and say nothing
    3. The customer must pay the increase before departure
    4. The customer must be offered a refund or acceptable alternative

74. A brochure advertises a specific resort package. Which detail must it include?

    1. The travel agent's personal reviews of each restaurant
    2. The resort owner's annual revenue for the past year
    3. The names and ages of guests booked for the same dates
    4. Any construction likely to affect use of the accommodation

75. An airline that a customer booked through an Ontario agency stops operating. What is different about this claim?

    1. The claim must be filed in the airline's home country instead
    2. No demand on the agent and wholesaler is needed first
    3. Only the agent may claim, not the customer
    4. The limit is doubled to $10,000 per person

76. Instead of a trust account, what may an established registrant provide to TICO?

    1. A personal guarantee signed by the owner's spouse
    2. A letter from its bank confirming a line of credit
    3. Proof that all of its customers bought trip cancellation insurance
    4. Security of at least one-sixth of a year's customer receipts

77. An agent that bought rooms for resale reimburses customers after the hotel fails. Can it claim from the Fund as an agent?

    1. No, an agent that acquired rights for resale cannot claim that way
    2. Yes, as long as it files the claim within two years
    3. Yes, for the full retail value of the rooms plus its lost commission
    4. Yes, but only for the counselling fees it had charged

78. A customer paid the agent in full, and the wholesaler sent the agent the customer's documents, but the agent never paid the wholesaler. What must the wholesaler do?

    1. Refuse service and refer the customer to TICO
    2. Cancel the booking until the customer pays again
    3. Still provide the travel services the customer bought
    4. Charge the customer the unpaid amount at the hotel check-in

79. TICO arranges a rescue flight for stranded travellers, but one traveller books a different flight instead. What is the risk?

    1. Their own costs may not be repaid if TICO's plan was practical
    2. Their travel agent will lose its TICO registration
    3. They must repay the whole cost of TICO's rescue flight
    4. Their passport will be cancelled by the Government of Canada for a year

80. Which transport details must a written ad for a specific package describe?

    1. The principal carrier, class of service and departure and arrival points
    2. The seat numbers and meals assigned to each passenger
    3. The exact baggage weight allowed for every bag carried
    4. The names of the pilots and the aircraft's year of manufacture and model