TICO Certification Practice Test 1

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1. 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
   Show answer and explanation

   Correct answer: Its business name, address and phone, and any relevant link to a registrant

   A travel agent may not sell or offer travel services unless it discloses the name it does business under, its address and business telephone number, and any connection with another registrant relevant to the sale.

   Based on: O. Reg. 26/05 s. 12(1)(b)–(c); checked 2026-10-24

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2. An ad shows a price for a Cuba package. What must the price include?

   1. The airfare and hotel, but not the fuel surcharge
   2. All fees, levies, service charges, surcharges and taxes
   3. Only the base fare, with taxes and fees listed in fine print
   4. Whatever the supplier quoted before any taxes
   Show answer and explanation

   Correct answer: All fees, levies, service charges, surcharges and taxes

   A price in a representation must be the total amount the customer will pay, including all fees, levies, service charges, surcharges, taxes and other charges, shown clearly and prominently.

   Based on: O. Reg. 26/05 s. 33(2); checked 2026-10-24

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3. 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
   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

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4. What must every registrant file with the registrar each fiscal year?

   1. A list of every customer it booked during the past year
   2. Financial documents of the type set by its sales in Ontario
   3. A new $10,000 security deposit
   4. Copies of every supplier contract it signed
   Show answer and explanation

   Correct answer: Financial documents of the type set by its sales in Ontario

   Every registrant files the financial documents required by the regulation for each fiscal year; the type depends on its sales in Ontario during the previous fiscal year.

   Based on: O. Reg. 26/05 s. 22; checked 2026-10-24

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5. Which amount is never reimbursed by the Fund?

   1. Counselling fees paid to a travel agent
   2. A final payment for a tour that never ran
   3. The deposit paid for a cancelled package
   4. Money for a cruise when the cruise line failed
   Show answer and explanation

   Correct answer: Counselling fees paid to a travel agent

   The Fund does not reimburse counselling fees paid to a travel agent, insurance premiums, prizes or goodwill trips, consequential damages or claims about the quality of services.

   Based on: O. Reg. 26/05 s. 57(3) para 4; checked 2026-10-24

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6. An agent receives the customer's vouchers from the wholesaler. What must the agent do?

   1. Check that the information is correct before passing them on
   2. Forward them unopened in order to protect the customer's privacy
   3. Keep them until the customer pays a delivery fee
   4. Send them to TICO for approval before delivery
   Show answer and explanation

   Correct answer: Check that the information is correct before passing them on

   On receiving tickets, vouchers, itineraries or other documents, the travel agent must ensure the information is correct before giving them to the customer.

   Based on: O. Reg. 26/05 s. 42; checked 2026-10-24

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7. 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
   Show answer and explanation

   Correct answer: Paying via a registered agent, demanding repayment, and not repaid

   A customer is reimbursed for services paid for but not provided if the payment went to or through a registered travel agent, the customer demanded repayment from the agent, wholesaler and others obliged (including insurers), and was not repaid because of bankruptcy, insolvency or closure.

   Based on: O. Reg. 26/05 s. 57(1); checked 2026-10-24

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8. 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
   Show answer and explanation

   Correct answer: Accurate records, including copies of their TICO certificates

   Registrants maintain accurate, up-to-date records about the employees and contractors who counsel customers, including copies of the relevant TICO certificates.

   Based on: O. Reg. 26/05 s. 16; checked 2026-10-24

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9. A customer received none of the travel services paid for. What must the registrant pay the customer?

   1. Twice the commission it earned, as a penalty
   2. Only the counselling fee, not the commissions
   3. Nothing, because commissions are always earned once a booking is made
   4. All commissions and pay it received, except counselling fees
   Show answer and explanation

   Correct answer: All commissions and pay it received, except counselling fees

   If the customer received none of the travel services, the registrant pays the customer all commissions and other remuneration it received for them, except counselling fees, unless the Fund already paid that amount.

   Based on: O. Reg. 26/05 s. 64; checked 2026-10-24

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10. 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
    Show answer and explanation

    Correct answer: Canadian dollars

    Prices in a representation must be in Canadian currency unless the ad clearly, prominently and comprehensibly indicates a different currency.

    Based on: O. Reg. 26/05 s. 33(7); checked 2026-10-24

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11. 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
    Show answer and explanation

    Correct answer: Whether or not the customer bought it

    When the agent sells the insurance, the invoice records whether the customer purchased it. When the agent does not sell that insurance, section 38(1)(h.1) instead requires a statement of whether the customer was advised of its availability. The distinction concerns what the agency sells, not simply whether this customer bought a policy.

    Based on: O. Reg. 26/05 s. 38(1)(h); checked 2026-10-24

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12. Which business fits the definition of a travel wholesaler?

    1. A souvenir shop at a resort selling local crafts
    2. A tour operator that resells travel services through agents
    3. A taxi company that drives arriving tourists from the airport
    4. A cruise line selling cabins on its own ships
    Show answer and explanation

    Correct answer: A tour operator that resells travel services through agents

    A travel wholesaler acquires rights to travel services to resell to travel agents, or deals with agents and wholesalers to sell services provided by others — commonly called a tour operator.

    Based on: Act s. 1 — Travel wholesaler; checked 2026-10-24

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13. 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
    Show answer and explanation

    Correct answer: A business that sells one-day tours

    Regulation section 2(2)5 lists sellers of one-day tours. The general condition in section 2(1) still applies: the person must not otherwise act as a travel agent or wholesaler. Other travel activities require their own analysis.

    Based on: O. Reg. 26/05 s. 2 — Exemptions; checked 2026-10-24

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14. Which information about registrants must the registrar make available to the public?

    1. The commission rates each wholesaler pays each agent
    2. The home addresses of every employee of every agency
    3. Each registrant's annual financial statements and bank balances
    4. Names of those whose registration was revoked in the past two years
    Show answer and explanation

    Correct answer: Names of those whose registration was revoked in the past two years

    The registrar publishes registrants' names and status, conditions, business contact details, names of those revoked in the previous two years, registrants charged by TICO and false advertising orders; financial information is not published.

    Based on: O. Reg. 26/05 s. 48; checked 2026-10-24

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15. Accommodation sold in a flight-and-hotel package is not in the condition represented. What must the customer be offered?

    1. A full refund of the package or a comparable package they accept
    2. A refund of the hotel nights only, minus taxes and fees
    3. A credit note for future travel booked within one year
    4. A free seat upgrade on the return flight in place of any refund
    Show answer and explanation

    Correct answer: A full refund of the package or a comparable package they accept

    If accommodation sold as part of a package with transportation is not as represented, the registrant offers a full and immediate refund of the whole package, including fees and taxes, or a comparable alternate package acceptable to the customer.

    Based on: O. Reg. 26/05 s. 39(2)(a); checked 2026-10-24

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16. In which case must a registrant reimburse the Fund for claims paid to its customers?

    1. When the registrant itself went bankrupt or ceased business
    2. Whenever a customer complains about the quality of a trip
    3. When a flight is delayed by bad weather at the destination airport
    4. When a hotel abroad failed through no fault of the agent
    Show answer and explanation

    Correct answer: When the registrant itself went bankrupt or ceased business

    A registrant must reimburse the Fund for claims paid to its customers if it is bankrupt, insolvent or ceased business, or if it extended credit and collected from the customer after the supplier had already failed.

    Based on: O. Reg. 26/05 s. 70; checked 2026-10-24

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17. 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
    Show answer and explanation

    Correct answer: 15 days

    The notice of proposal states that the registrant may request a Licence Appeal Tribunal hearing by mailing or delivering a written request within 15 days after service; otherwise the registrar may carry out the proposal.

    Based on: Act s. 11; checked 2026-10-24

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18. 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
    Show answer and explanation

    Correct answer: $25,000

    Section 18 provides for a committee and a finding of non-compliance with a ministerial code before its orders apply. Its stated fine maximum is $25,000, or a lower prescribed amount. This question concerns the statutory framework; it does not claim that a particular current code, committee or proceeding has been established.

    Based on: Act s. 18; checked 2026-10-24

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19. 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
    Show answer and explanation

    Correct answer: The total price, travel dates and a fair description of the services

    Before the sale the agent discloses the total price, the travel dates and a fair and accurate description of the travel services to be provided.

    Based on: O. Reg. 26/05 s. 36(b); checked 2026-10-24

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20. 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
    Show answer and explanation

    Correct answer: Only after the supplier has been paid in full

    The registrant's commission may be withdrawn from the trust account only after the supplier of the travel services has been paid in full.

    Based on: O. Reg. 26/05 s. 27(6)(c); checked 2026-10-24

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21. 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
    Show answer and explanation

    Correct answer: A false statement made in the application

    Registration may be refused if the applicant cannot reasonably be expected to be financially responsible, if past conduct suggests it will not act lawfully with integrity and honesty, or if a false statement is made in the application.

    Based on: Act s. 8; checked 2026-10-24

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22. 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
    Show answer and explanation

    Correct answer: The agent is required to answer the customer's questions

    The agent must advise the customer that the agent is required to answer any questions arising from the disclosed information or from a representation.

    Based on: O. Reg. 26/05 s. 36(g); checked 2026-10-24

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23. 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
    Show answer and explanation

    Correct answer: The customer must be offered a refund or acceptable alternative

    If the contract does not permit increases and the total price nevertheless increases, section 40(1)5 requires prompt notice and an immediate full-refund or acceptable-comparable-alternative offer, regardless of the amount or reason. The 7% threshold belongs to a different situation; an agency absorbing a supplier cost without raising the customer’s price is not this scenario.

    Based on: O. Reg. 26/05 s. 40(1) para 5; checked 2026-10-24

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24. 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
    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 ↗