TICO Certification Practice Test 3

Every original question, with optional answers, explanations and official references. Open an answer to study, or take the test above for instant feedback.

1. What is the maximum penalty for an individual convicted of an offence under the Travel Industry Act?

   1. A $50,000 fine, up to two years less a day in jail, or both
   2. A $5,000 fine or 30 days in jail
   3. A $250,000 fine, with no jail term possible
   4. A $25,000 fine and a ten-year ban from all travel industry work
   Show answer and explanation

   Correct answer: A $50,000 fine, up to two years less a day in jail, or both

   An individual can be fined up to $50,000 and/or imprisoned for up to two years less a day; a corporation can be fined up to $250,000.

   Based on: Act s. 31(3); checked 2026-10-24

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2. 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
   Show answer and explanation

   Correct answer: Typical documents needed, such as passports and affidavits

   For proposed travel outside Canada, explain typical documents for each traveller, such as passports, visas and affidavits. A particular destination may impose further rules; this question does not claim that an affidavit is mandatory for every one-parent trip.

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

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3. 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
   Show answer and explanation

   Correct answer: A full refund or a comparable alternative the customer accepts

   When travel documents change because the routing changes and there is not enough time to obtain them before departure, the registrant must offer a full and immediate refund or comparable alternate services.

   Based on: O. Reg. 26/05 s. 40(1) para 6; checked 2026-10-24

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4. An agency is moving its office to a new address. When must it notify the registrar?

   1. Only if customers complain
   2. At least five days before the move
   3. Within 30 days after the move
   4. At its next annual renewal
   Show answer and explanation

   Correct answer: At least five days before the move

   Registrants notify the registrar at least five days before a change of office or branch address, a planned change of the office manager, or a change in bank account name, number or institution.

   Based on: O. Reg. 26/05 s. 17(2); checked 2026-10-24

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5. 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"
   Show answer and explanation

   Correct answer: "Was $1,899, now $1,499"

   A representation shall not refer to a previous price for travel services. Total prices, the currency and a note that more information is available from a travel agent are allowed or required.

   Based on: O. Reg. 26/05 s. 33(6); checked 2026-10-24

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6. 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
   Show answer and explanation

   Correct answer: No, an agent that acquired rights for resale cannot claim that way

   The travel agent reimbursement provisions do not apply if the agent had acquired the right to the travel services for resale; that registrant has its own duty to the customer under section 46.

   Based on: O. Reg. 26/05 ss. 58(2), 46; checked 2026-10-24

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7. Where must a registrant maintain its business bank accounts?

   1. In Ontario, at an eligible bank, loan/trust company or credit union
   2. Only at a bank chosen and approved by TICO each year
   3. At a money service business licensed in another province
   4. At any financial institution in Canada or the United States
   Show answer and explanation

   Correct answer: In Ontario, at an eligible bank, loan/trust company or credit union

   Section 26 requires the accounts to be maintained in Ontario at a Schedule I or II bank, a loan or trust corporation, or a credit union, in a permitted business name. The requirement is not merely that an account located somewhere else uses a Canadian bank.

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

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8. What changed in TICO's education program on January 5, 2026?

   1. The exam was moved from online to in-person test centres only
   2. Two levels merged into one e-learning program and one exam
   3. Certification became optional for home-based travel agents
   4. The program was replaced by a college diploma requirement
   Show answer and explanation

   Correct answer: Two levels merged into one e-learning program and one exam

   On January 5, 2026 the Education Standards Program became the TICO Certification Program: interactive e-learning replaced the static manual, and the Travel Counsellor and Supervisor/Manager levels became a single learning experience and exam.

   Based on: TICO — Current Certification Program and transition FAQ; checked 2026-10-24

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9. 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
   Show answer and explanation

   Correct answer: Travel agent and travel wholesaler; the changes are not in force

   The definitions of travel seller and travel salesperson will take effect only on a day named by proclamation. Until then the in-force Act still uses travel agent and travel wholesaler.

   Based on: Act s. 1 — 2017 amendments; checked 2026-10-24

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10. When may the director direct the Fund to pay for a traveller's immediate departure?

    1. Only if the traveller is a registered travel agent travelling on business
    2. Whenever a traveller misses a flight because of traffic on the way to the airport
    3. When they were stopped through no fault of their own and suffering must be eased
    4. 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

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11. 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
    Show answer and explanation

    Correct answer: No, failure of an end supplier other than an airline or cruise line is excluded

    Section 57(3)1 excludes non-provision caused by failure of an end supplier other than an airline or cruise line. An intermediary acquiring rights for resale may separately owe remedies under section 46. The Fund exclusion does not automatically erase other duties or insurance rights.

    Based on: O. Reg. 26/05 s. 57(3) para 1; checked 2026-10-24

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12. 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
    Show answer and explanation

    Correct answer: Only if the trip is available at that price while the ad runs

    A representation may not refer to a price unless the travel services are available at that price during the time the representation applies.

    Based on: O. Reg. 26/05 s. 33(5); checked 2026-10-24

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13. 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
    Show answer and explanation

    Correct answer: They may differ from those in Canada

    The agent must advise that living standards and practices, and standards for utilities, services and accommodation, at the destination may differ from those in Canada.

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

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14. 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
    Show answer and explanation

    Correct answer: The part used as a dwelling

    The registrar or a designate may enter and inspect business premises at any reasonable time, other than any part used as a dwelling, with free access to relevant money, documents, records and data systems.

    Based on: Act s. 17; checked 2026-10-24

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15. Which payment details belong on the customer's invoice?

    1. The customer's credit limit and bank account balance
    2. The commission the agency will earn from the supplier on the trip
    3. The agency's bank account number and branch address
    4. Booking date, payment amount, balance owing and its due date
    Show answer and explanation

    Correct answer: Booking date, payment amount, balance owing and its due date

    The invoice shows the booking date and first payment date, the amount paid and whether it is full or partial, any balance owing and the date it is due.

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

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16. 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
    Show answer and explanation

    Correct answer: No, prizes, awards and goodwill trips are excluded

    Travel services that were to be received as a prize, award or goodwill gesture are not reimbursed by the Fund.

    Based on: O. Reg. 26/05 s. 57(3) para 5; checked 2026-10-24

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17. 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
    Show answer and explanation

    Correct answer: When it is curriculum-based, approved and earns the teacher no profit

    The exemption covers curriculum-related one-day tours, or other curriculum travel arranged through a registered travel agent. The relevant school authority must approve and the teacher must receive no gain beyond participating. Parental permission alone is not this exemption.

    Based on: O. Reg. 26/05 s. 2(2) para 7 — Teachers; checked 2026-10-24

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18. 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
    Show answer and explanation

    Correct answer: It had no prior defaults from that agent and checked it

    A wholesaler can claim if the agent is registered, they dealt in good faith at arm's length, the agent failed to pass on the customer's money, there were no previous defaults by that agent, and the wholesaler took reasonable measures to ensure the agent was reliable.

    Based on: O. Reg. 26/05 s. 59(1); checked 2026-10-24

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19. 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
    Show answer and explanation

    Correct answer: Rewrites are allowed, subject to waits and the six-month enrolment period

    Oliver's allows rewrites, but all attempts must be passed within six months of enrolment; otherwise re-enrolment is required. Waits are 24 hours before the first rewrite, five days before the second, and thirty days before later rewrites. Each rewrite costs $50.

    Based on: Oliver Solutions — TICO program FAQ, current exam/attempt requirements; checked 2026-10-24

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20. An agency uses a section 27 trust account. How soon must money it receives for travel services be deposited?

    1. Within two banking days after it is received
    2. Only when the supplier sends an invoice
    3. Within 30 days, at the end of each calendar month
    4. Before the customer's date of departure
    Show answer and explanation

    Correct answer: Within two banking days after it is received

    All money received from customers for travel services must be deposited into the trust account within two banking days after receipt.

    Based on: O. Reg. 26/05 s. 27(3); checked 2026-10-24

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21. How must fees and taxes be shown on the customer's invoice?

    1. Only on request after the trip has ended
    2. Only if they add up to more than $100
    3. Each listed, and whether it is refundable or not
    4. As one combined total, with no breakdown of any kind
    Show answer and explanation

    Correct answer: Each listed, and whether it is refundable or not

    The invoice sets out any fees, levies, service charges, surcharges, taxes and other charges and whether those amounts are refundable or non-refundable.

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

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22. 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
    Show answer and explanation

    Correct answer: After 30 days, if there is new evidence or changed circumstances

    A person whose registration was refused, revoked or not renewed may reapply only after the prescribed 30 days and only if new or other evidence is available or material circumstances have changed.

    Based on: Act s. 14; O. Reg. 26/05 s. 7; checked 2026-10-24

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23. What is the normal cap on trip-completion payments for one event?

    1. $10 million, as set each year by the Licence Appeal Tribunal
    2. $2 million, with up to $5 million more if approved
    3. $5,000 in total for all travellers combined
    4. $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

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24. A contract permits increases and the traveller has not paid in full. Above what cumulative increase, excluding the specified sales-tax increases, does section 40 require a refund-or-alternative offer?

    1. 5 per cent
    2. 10 per cent
    3. 15 per cent
    4. 7 per cent
    Show answer and explanation

    Correct answer: 7 per cent

    The trigger is more than 7%, excluding the specified retail sales tax or federal GST increases. Exactly 7% does not meet this particular trigger. Other grounds may still require an offer, and a permitted-increase contract does not permit an increase after full payment.

    Based on: O. Reg. 26/05 s. 40(1) para 4; checked 2026-10-24

    Official reference ↗