TICO Certification Practice Test 4

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 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
   Show answer and explanation

   Correct answer: It needs the registrar's written consent in advance

   No registrant may keep more than one trust account without the registrar's written consent obtained in advance, and copies of trust agreements and changes go to the registrar within five days.

   Based on: O. Reg. 26/05 s. 27(4)–(5); checked 2026-10-24

   Official reference ↗

2. A registrant bought hotel rooms for resale and the hotel fails to provide a room a customer paid for. What must the registrant do?

   1. Reimburse, offer a comparable alternative, or offer a future-travel voucher acceptable to the customer
   2. Refund only the commission it earned on the booking
   3. Refer the customer to the hotel's head office abroad
   4. Tell the customer to claim from the Compensation Fund
   Show answer and explanation

   Correct answer: Reimburse, offer a comparable alternative, or offer a future-travel voucher acceptable to the customer

   Section 46 places the duty on the registrant that acquired the rights for resale. It may reimburse, supply comparable alternatives acceptable to the customer, or provide a future-travel voucher acceptable to the customer. It cannot impose a voucher merely because it prefers not to refund.

   Based on: O. Reg. 26/05 s. 46; checked 2026-10-24

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3. 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
   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

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4. 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
   Show answer and explanation

   Correct answer: Immediately, though the Tribunal may stay it

   The registrar's order to cease, retract or correct takes effect immediately, but the Tribunal may grant a stay until it disposes of a hearing. A correction must be of equal prominence to the original.

   Based on: Act s. 29; checked 2026-10-24

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5. 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
   Show answer and explanation

   Correct answer: Its registered name or an acknowledged business name

   A registrant may use only its registered name or a name registered under the Business Names Act that it notified to and had acknowledged by the registrar, and never a name implying a sponsorship, approval or affiliation it does not have.

   Based on: O. Reg. 26/05 s. 9; checked 2026-10-24

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6. 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
   Show answer and explanation

   Correct answer: Current assets must be greater than current liabilities

   Section 24 requires current assets to exceed current liabilities under generally accepted accounting principles, excluding the section 25 security and capital of interested persons. The regulation contains a specific exemption for qualifying government-funded tourism non-profits, so the rule should not be presented as exception-free.

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

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7. 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
   Show answer and explanation

   Correct answer: A listed business phone separate from the home phone

   A registrant may operate from a dwelling only if the municipality's zoning permits it, it has a listed business telephone number different from any residential number, and it has made satisfactory arrangements for access to its business records.

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

   Official reference ↗

8. 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
   Show answer and explanation

   Correct answer: No rise after full payment; refund right above 7%, excluding specified tax rises

   If the contract permits price increases, the invoice must state that no increase is permitted after full payment and that the customer may cancel for a full refund if cumulative increases exceed 7%, excluding increases in retail sales tax or federal goods and services tax.

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

   Official reference ↗

9. 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
   Show answer and explanation

   Correct answer: No demand on the agent and wholesaler is needed first

   For an airline or cruise-line end-supplier failure, section 57(4) removes the specified agent/wholesaler demand and non-repayment conditions. Other demands and eligibility rules, including possible insurance or other legally owed reimbursement, remain relevant. It is not an automatic double recovery.

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

   Official reference ↗

10. For travel outside Canada, what must the agent tell the customer about entry to another country?

    1. Entry rules are the airline's concern, not the customer's
    2. Entry may be refused even if documents are complete
    3. A valid Ontario driver's licence is enough for any country
    4. Entry is guaranteed once a TICO agency books the trip
    Show answer and explanation

    Correct answer: Entry may be refused even if documents are complete

    For travel outside Canada, the agent advises about typical documents such as passports, visas and affidavits, that entry may be refused even if the documents are complete, and that standards at the destination may differ from Canada's.

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

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11. 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
    Show answer and explanation

    Correct answer: Order them frozen, or apply to court for a receiver and manager

    Sections 22 and 23 provide specified grounds and procedures for a court-appointed receiver/manager and a director’s freeze order. These are statutory protective measures, not an unrestricted power to seize and sell assets whenever a business appears financially weak.

    Based on: Act ss. 22–23; checked 2026-10-24

    Official reference ↗

12. 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
    Show answer and explanation

    Correct answer: Online on a computer, with required software and two-camera proctoring

    The provider currently requires a computer, Safe Exam Browser, a webcam and a smartphone camera activated by QR code. A webcam alone is insufficient. Review the provider's current system requirements before the paid official exam; this free practice site does not use proctoring or cameras.

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

    Official reference ↗

13. 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
    Show answer and explanation

    Correct answer: The payment terms, amount paid and each traveller's destination

    A wholesaler's statement to the agent sets out the agent's name and address, payment terms and amount paid, each traveller's name and their destination and, if relevant, departure date.

    Based on: O. Reg. 26/05 s. 38(2); checked 2026-10-24

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14. 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
    Show answer and explanation

    Correct answer: Any construction likely to affect use of the accommodation

    Section 34 requires the period, payment and cancellation terms, price, insurance availability and cost, refund policy and accurate service description in ordinary specific-service written ads. Relevant construction must include its anticipated start and duration. Billboard-style limited media have a specific exception.

    Based on: O. Reg. 26/05 s. 34(1); checked 2026-10-24

    Official reference ↗

15. The board asks a claimant for more documents. What happens if they are not sent within 12 months?

    1. The claim is sent to the Licence Appeal Tribunal
    2. The claim is paid automatically at half of its value
    3. Nothing; there is no deadline for documents
    4. The claim is treated as abandoned unless that would be unfair
    Show answer and explanation

    Correct answer: The claim is treated as abandoned unless that would be unfair

    If requested additional documents or information are not provided within 12 months, the claim is treated as abandoned, unless the board is satisfied that would not be fair.

    Based on: O. Reg. 26/05 s. 61(3); checked 2026-10-24

    Official reference ↗

16. What is the maximum the Fund may pay for each traveller whose travel services were paid for?

    1. $25,000
    2. $5,000
    3. $1,000
    4. $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 ↗

17. Why does the law require customer money to be held in trust?

    1. To let the agency earn interest that it keeps for itself
    2. To protect customers until the supplier is paid or refunds made
    3. To make it easier for the agency to pay its staff weekly
    4. To give TICO an automatic share of every booking
    Show answer and explanation

    Correct answer: To protect customers until the supplier is paid or refunds made

    Customer money is held in trust and can only go to the supplier, back to the customer, or to the agent's commission after the supplier is paid, which protects customers' payments.

    Based on: Act s. 25; O. Reg. 26/05 s. 27; checked 2026-10-24

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18. 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
    Show answer and explanation

    Correct answer: The range of penalties and any non-refundable payments

    The agent explains requirements and limits on transfer or cancellation, including the range of penalties or other costs and any non-refundable payments.

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

    Official reference ↗

19. For the exemption, what is a one-day tour?

    1. Any tour that costs less than $500 per person, including any hotel nights
    2. A tour that stays within 100 kilometres of the departure point
    3. A tour sold on the same day it departs from Ontario
    4. One that returns to its start within 24 hours, with no lodging
    Show answer and explanation

    Correct answer: One that returns to its start within 24 hours, with no lodging

    A one-day tour starts and ends at the same departure point within a 24-hour period and includes travel services other than accommodation.

    Based on: O. Reg. 26/05 s. 2(3) — One-day tour; checked 2026-10-24

    Official reference ↗

20. A flight is delayed 26 hours because of a hurricane. Does the specific 24-hour trigger in Regulation section 40(1)1 apply?

    1. Yes, but only for flights outside Canada
    2. No, weather is an excluded reason
    3. Only if the customer bought insurance
    4. Yes, any delay over 24 hours requires it
    Show answer and explanation

    Correct answer: No, weather is an excluded reason

    Weather is one of the exceptions to this particular 24-hour departure-change trigger, along with mechanical problems, safety, labour disputes and force majeure. That does not decide rights under other contract terms, insurance or air-passenger rules; it is not a statement that weather delays can never lead to a refund.

    Based on: O. Reg. 26/05 s. 40(2); checked 2026-10-24

    Official reference ↗

21. 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
    Show answer and explanation

    Correct answer: At least one certified travel counsellor

    Each office must have at least one person with TICO travel counsellor certification available throughout its hours of operation.

    Based on: O. Reg. 26/05 s. 15(2)(b); checked 2026-10-24

    Official reference ↗

22. A charter flight's departure is moved 30 hours later for scheduling reasons. What must the registrant offer?

    1. A 10 per cent discount on a future trip
    2. A $50 meal voucher and nothing more
    3. Nothing, since charter flight times often change by a day or more
    4. A full refund or an acceptable comparable alternative
    Show answer and explanation

    Correct answer: A full refund or an acceptable comparable alternative

    A delay or advance of 24 hours or more (other than for mechanical problems, safety, weather, a strike or lock-out, or force majeure) requires prompt notice and an offer of a full and immediate refund or comparable alternate services acceptable to the customer.

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

    Official reference ↗

23. 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
    Show answer and explanation

    Correct answer: Transportation or lodging for travellers, and related services

    Travel services are transportation or sleeping accommodation for a traveller, tourist or sightseer, or other services combined with that transportation or accommodation.

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

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24. 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
    Show answer and explanation

    Correct answer: If they failed to take reasonable care to prevent it

    An officer or director of a corporation is guilty of an offence if he or she fails to take reasonable care to prevent the corporation from committing an offence.

    Based on: Act s. 31(2); checked 2026-10-24

    Official reference ↗