Besides transport, what else can trip-completion payments cover?
TICO Certification overview
TICO Certification: Fund limits, trip completion and major events
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Study reference: TICO study notes from the Travel Industry Act, 2002 and O. Reg. 26/05 (Oct 2026), Ch. 11 Fund limits and trip completion — O. Reg. 26/05 ss. 57.1, 65–69
All 12 questions in this test
Every original question, with optional answers, explanations and official references. Open an answer to study, or take the test above for instant feedback.
Besides transport, what else can trip-completion payments cover?
- Entertainment and excursions booked at the destination
- Necessary accommodation and meals until the trip can be completed
- Replacement luggage and new clothing of the traveller's own choice
- Compensation for the stress of the cancelled holiday
Show answer and explanation
Correct answer: Necessary accommodation and meals until the trip can be completed
Trip-completion payments can cover the cost of necessary accommodation and meals before the trip can be completed, along with transport and costs of accessing money.
Based on: O. Reg. 26/05 s. 69(1)(b); checked 2026-10-24
Official reference ↗A couple paid $8,000 total, $4,000 each, for undelivered services. All claim conditions are met and no excluded fees, other recoveries or event reductions apply. What is the maximum reimbursement?
- $8,000, as each person is covered up to $5,000
- $10,000, two full per-person limits
- $5,000, the limit for each booking
- $2,500, which is half of one per-person limit
Show answer and explanation
Correct answer: $8,000, as each person is covered up to $5,000
The eligible loss is $4,000 per traveller, within the $5,000 per-person cap: $8,000 total. The Fund does not pay two full $5,000 limits where only $8,000 was paid. Actual claims also depend on exclusions, other reimbursements and event-level rules.
Based on: O. Reg. 26/05 s. 66; checked 2026-10-24
Official reference ↗Is trip completion covered when the failed party is a foreign hotel (an end supplier)?
- No, trip completion is not covered for end-supplier failures
- Yes, trip completion covers every kind of supplier failure
- Yes, but only for trips that began in Ontario
- Yes, if the hotel failure lasted more than 48 hours
Show answer and explanation
Correct answer: No, trip completion is not covered for end-supplier failures
Trip-completion reimbursement does not apply where travel services were not provided because an end supplier became bankrupt, insolvent or ceased business; it applies to failures of registrants.
Based on: O. Reg. 26/05 s. 57.1(3)(c); checked 2026-10-24
Official reference ↗When may the director direct the Fund to pay for a traveller's immediate departure?
- Only if the traveller is a registered travel agent travelling on business
- Whenever a traveller misses a flight because of traffic on the way to the airport
- When they were stopped through no fault of their own and suffering must be eased
- When a traveller wants to leave earlier than the date originally booked
Show answer and explanation
Correct answer: When they were stopped through no fault of their own and suffering must be eased
The director may direct payments for immediate departure if the traveller was preparing to leave and was prevented through no fault of their own, immediate payment is needed to alleviate suffering, and the customer would likely be eligible for reimbursement.
Based on: O. Reg. 26/05 s. 68; checked 2026-10-24
Official reference ↗TICO arranges a rescue flight for stranded travellers, but one traveller books a different flight instead. What is the risk?
- Their own costs may not be repaid if TICO's plan was practical
- Their travel agent will lose its TICO registration
- They must repay the whole cost of TICO's rescue flight
- Their passport will be cancelled by the Government of Canada for a year
Show answer and explanation
Correct answer: Their own costs may not be repaid if TICO's plan was practical
Trip-completion costs are not reimbursed if the traveller was told of arrangements made through Fund payments directed by the director and did not use them although it was reasonably practicable to do so.
Based on: O. Reg. 26/05 s. 57.1(3)(e); checked 2026-10-24
Official reference ↗What is the normal cap on trip-completion payments for one event?
- $10 million, as set each year by the Licence Appeal Tribunal
- $2 million, with up to $5 million more if approved
- $5,000 in total for all travellers combined
- $500,000, with no further amounts allowed
Show answer and explanation
Correct answer: $2 million, with up to $5 million more if approved
Trip-completion payments are capped at $2 million per event; the director may, with board approval, authorize additional payments of up to $5 million, which come out of the $5 million reimbursement cap and take priority.
Based on: O. Reg. 26/05 s. 66 paras 3–4; checked 2026-10-24
Official reference ↗What may happen when the director designates a failure as a major event?
- The $5,000 per-person limit is removed
- Payments may be delayed, or paid in instalments or partly
- Travel agents must refund all of their customers personally
- All claims are paid twice as fast as usual
Show answer and explanation
Correct answer: Payments may be delayed, or paid in instalments or partly
For a major event, the board may defer payments until it has all likely claims and may pay in instalments or only partially if needed to protect the Fund.
Based on: O. Reg. 26/05 s. 65; checked 2026-10-24
Official reference ↗What is the maximum the Fund may pay for each traveller whose travel services were paid for?
- $25,000
- $5,000
- $1,000
- $10,000
Show answer and explanation
Correct answer: $5,000
A maximum of $5,000 may be paid for each person whose travel services were paid for, covering reimbursement, immediate departure and trip completion.
Based on: O. Reg. 26/05 s. 66 para 1; checked 2026-10-24
Official reference ↗Which condition must a stranded traveller meet to be reimbursed for trip completion?
- Book the most expensive flight home that is available
- Make every reasonable effort to get comparable services
- Wait at the airport until TICO staff arrive
- Pay for everything only in cash
Show answer and explanation
Correct answer: Make every reasonable effort to get comparable services
Section 57.1 requires every reasonable effort to obtain comparable services and travel as close as reasonably possible to the original date. In addition, ignoring notified director-arranged travel when using it was reasonably practicable can exclude reimbursement. These are part of the conditions, not a guarantee of payment.
Based on: O. Reg. 26/05 s. 57.1(3); checked 2026-10-24
Official reference ↗What is the total cap on reimbursement and immediate-departure payments for all claims from one event?
- $5 million
- $20 million
- $2 million
- $500,000
Show answer and explanation
Correct answer: $5 million
The event-level reimbursement/immediate-departure ceiling is $5 million, plus subrogated recoveries. Approved additional trip-completion payments are deducted from that ceiling and have priority. Individual eligibility, per-traveller limits and major-event partial-payment rules also remain relevant.
Based on: O. Reg. 26/05 s. 66 para 2; checked 2026-10-24
Official reference ↗A family’s trip cannot be completed because a registered tour operator failed. Assuming claim eligibility, which expense may trip-completion reimbursement cover?
- Souvenirs bought during the trip
- Lost wages for the extra days away
- Transport to their final destination or home
- A refund of the whole original trip price
Show answer and explanation
Correct answer: Transport to their final destination or home
Section 57.1 allows specified reasonable transport costs, necessary accommodation/meals and costs of accessing money. Eligibility conditions, exclusions and Fund limits apply. Lost wages, souvenirs and a refund of the whole original package are not trip-completion expenses.
Based on: O. Reg. 26/05 ss. 57.1, 69; checked 2026-10-24
Official reference ↗An otherwise eligible stranded traveller prefers to go home. What return-cost condition applies to trip-completion reimbursement?
- If it costs no more than going to the final destination
- Only if a doctor certifies that the traveller is too ill
- Only if the traveller is over 65 years old
- Never; only onward travel can be paid
Show answer and explanation
Correct answer: If it costs no more than going to the final destination
Returning the traveller home is covered if that is their preference and can be done for a cost that does not exceed the cost of bringing them to the final destination.
Based on: O. Reg. 26/05 s. 57.1(2) para 1(ii); checked 2026-10-24
Official reference ↗
Fund limits, trip completion and major events: key rules to remember
Our summary of what the official handbook says on this topic, in our own words. Read it before or after the practice questions above, then check the original chapter. Read the official chapter ↗
Maximums
- Per traveller: Up to $5,000 per person whose travel services were paid for, covering reimbursement, immediate departure and trip completion.
- Event cap: Up to $5 million in total for reimbursement and immediate-departure claims from one event or major event (plus subrogated recoveries).
- Completion cap: Up to $2 million for trip completion from one event; the director may, with board approval, authorize up to $5 million more, which then comes out of the $5 million reimbursement cap and is paid first.
Trip completion
- Completion costs: If a traveller has started a trip that cannot be completed because a registrant failed, reasonable trip-completion costs can be paid: transport to the final destination (or home if preferred and no more expensive), necessary accommodation and meals until the trip can be completed, and costs of accessing money or financing for these.
- Reasonable efforts: The traveller must make reasonable efforts to get comparable services as close as possible to the original date, and must use arrangements the director has organized when reasonably practicable.
- End-supplier failure: Trip completion is not covered when the failure is an end supplier's.
Immediate departure
- Immediate departure: The director may direct payments so that a traveller prevented from departing through no fault of their own can leave immediately, when that is needed to alleviate suffering and the customer would likely be eligible.
Major events
- Major event: The director may designate a major event considering its nature, number of claims and the need to protect the Fund; the board may then delay payments until all claims are in and pay in instalments or partially.
Study the Fund limits, trip completion and major events rules as flashcards →
Other topics
- TICO, the Act and who must registerWhat TICO does, the legal definitions of travel agent, travel wholesaler and travel services, who must be registered and which businesses and groups are exempt.
- Certification and office staffingThe 2026 TICO Certification Program, who must be certified to sell or give travel advice, supervisor/manager rules for each office, certified counsellors on duty and records of staff certificates.
- Registration requirements and noticesEligibility to register, grounds for refusal, proposals and Licence Appeal Tribunal hearings, immediate suspension, $10,000 security for new applicants, business names, home offices, branches, certificates and the notices registrants must give.
- Financial requirements, trust accounts and recordsFinancial filings, positive working capital, bank accounts, the Travel Industry Act trust account and its rules, security instead of a trust account and six-year business records.
- Advertising and representationsRequired details in ads, false advertising, all-inclusive price rules, information required in written ads for specific travel services, photographs, registrar orders and pre-approval.
- Disclosure before the saleWhat a travel agent must tell the customer before an agreement and before taking payment or card details, advice for travel outside Canada, insurance advice and counselling fees.
- Invoices and travel documentsWhat the customer's statement, invoice or receipt must show, price increase wording, wholesaler statements, numbering, document delivery timelines and checking documents.
- Changes, refunds and alternativesTelling customers about changes, verifying accommodation, the events that require an offer of a full refund or comparable alternative, price increase limits and the files registrants must keep.
- Resale, supplier failure and liabilityJoint liability for customer money, written supplier agreements, duties when a supplier fails, rules on air carriers, refunding commissions and when registrants must repay the Fund.
- Compensation Fund claimsWho can claim from the Travel Industry Compensation Fund, the demand and eligibility rules, what is not covered, the six-month deadline, documents, registrant claims and hearings.
- Complaints, inspections and offencesHow complaints are handled, inspections, discipline, receivers and freeze orders, offences and penalties, limitation periods and the information TICO publishes.