TICO Certification Practice Test 5

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

1. 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
   Show answer and explanation

   Correct answer: Promptly notify the registrar in writing, with reasons

   A registrant who stops trading with another registrant because of its apparent lack of financial responsibility must promptly notify the registrar in writing of the fact and the reasons.

   Based on: O. Reg. 26/05 s. 21; checked 2026-10-24

   Official reference ↗

2. Which business relationship is prohibited for a registrant?

   1. Doing business with someone who must be registered but is not
   2. Working with an airline that is not based in Canada
   3. Selling packages from a wholesaler based in another province
   4. Hiring a certified counsellor who works from home
   Show answer and explanation

   Correct answer: Doing business with someone who must be registered but is not

   A registrant shall not carry on business with another person who is required to be registered under the Act but is not.

   Based on: O. Reg. 26/05 s. 20; checked 2026-10-24

   Official reference ↗

3. 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
   Show answer and explanation

   Correct answer: Trip cancellation and, where needed, out-of-province health

   The agent must advise the customer about the availability of trip cancellation insurance and, if applicable, out-of-province health insurance.

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

   Official reference ↗

4. An agency knows it will stop selling travel services next month. What must it do?

   1. Tell its customers, but not the registrar
   2. Give the registrar written notice at least 10 days before it stops
   3. Nothing, as long as all of its customers have already travelled home
   4. Apply to the Licence Appeal Tribunal to close
   Show answer and explanation

   Correct answer: Give the registrar written notice at least 10 days before it stops

   A registrant that knows it will cease to sell travel services at least 10 days ahead must give written notice as soon as practicable and no less than 10 days before, and then send letters with the closing date and where records will be kept.

   Based on: O. Reg. 26/05 s. 18.1; checked 2026-10-24

   Official reference ↗

5. An agent paid the wholesaler 30 days before departure. By when must the wholesaler send the tickets and documents?

   1. At least 30 days before departure in every single case
   2. On the morning of departure at the airport
   3. At least 14 days before departure, unless told otherwise
   4. At least 48 hours before departure
   Show answer and explanation

   Correct answer: At least 14 days before departure, unless told otherwise

   If the agent pays the wholesaler 21 or more days before departure, the wholesaler forwards tickets, vouchers, itinerary and other documents at least 14 days before departure, unless the agent or customer directs otherwise.

   Based on: O. Reg. 26/05 s. 41; checked 2026-10-24

   Official reference ↗

6. 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
   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 ↗

7. How long does a customer have to make a claim to the Fund?

   1. Six months after the registrant or end supplier fails
   2. Two years after the booking was made
   3. Thirty days after the planned date of departure
   4. There is no time limit for Fund claims
   Show answer and explanation

   Correct answer: Six months after the registrant or end supplier fails

   Claims are made in writing to TICO's board within six months after the relevant registrant or end supplier becomes bankrupt, insolvent or ceases business; claims made later are not valid.

   Based on: O. Reg. 26/05 s. 60; checked 2026-10-24

   Official reference ↗

8. Which businesses operating in Ontario must register if no regulatory exemption applies?

   1. Only tour operators that own their own aircraft
   2. Travel agents and travel wholesalers operating in Ontario
   3. Only agencies with more than ten employees
   4. Every Ontario resident who books a vacation online for their family
   Show answer and explanation

   Correct answer: Travel agents and travel wholesalers operating in Ontario

   Act section 4 requires registration before acting, or holding oneself out as available to act, as a travel agent or wholesaler. Check the actual exemption conditions rather than assuming every travel-related activity is registered.

   Based on: Act s. 4 — Registration required; checked 2026-10-24

   Official reference ↗

9. 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
   Show answer and explanation

   Correct answer: The travel counsellor who made the booking and took the first payment

   The invoice must name the travel counsellor who made the booking and accepted the first payment, along with customer, payment, price, supplier and insurance details.

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

   Official reference ↗

10. 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
    Show answer and explanation

    Correct answer: Registrants must not make them in any ad or material

    No registrant may make false, misleading or deceptive statements in any advertisement, circular, pamphlet or material published by any means relating to travel services.

    Based on: Act s. 28; O. Reg. 26/05 s. 32; checked 2026-10-24

    Official reference ↗

11. 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
    Show answer and explanation

    Correct answer: An agreement with the supplier with all terms in writing

    A wholesaler (or an agent that acquires rights to travel services for resale) may sell travel services only if it has an agreement with the supplier with all terms set out in writing.

    Based on: O. Reg. 26/05 s. 45; checked 2026-10-24

    Official reference ↗

12. 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
    Show answer and explanation

    Correct answer: Within three business days, by email

    Results are reported as pass or fail by email within three business days, unless the recorded session has irregularities that need a compliance review.

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

    Official reference ↗

13. An agent charges a counselling fee. When must the customer be told about it?

    1. Before counselling or selling to the customer
    2. Only if the customer decides not to book
    3. After the customer returns from the trip
    4. On the final invoice after the trip is booked
    Show answer and explanation

    Correct answer: Before counselling or selling to the customer

    A travel agent who charges a counselling fee or service charge must inform the customer of it, and whether any part is refundable, before counselling or selling travel services.

    Based on: O. Reg. 26/05 s. 44; checked 2026-10-24

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14. 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
    Show answer and explanation

    Correct answer: Taking over 25% of the price more than 30 days ahead

    This particular exemption excludes airlines, cruise lines and bus lines and limits taking more than 25% of the cost more than 30 days before the services. Accommodation end suppliers appear in a separate category without this payment condition; do not apply it indiscriminately to a lodge or hotel.

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

    Official reference ↗

15. 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
    Show answer and explanation

    Correct answer: To pay the supplier of the travel services the money was for

    Trust money may be paid out only to the supplier of the travel services it was received for, as a refund to a customer, or — after the supplier is paid in full — as the registrant's commission.

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

    Official reference ↗

16. Which registrants must participate in the Travel Industry Compensation Fund?

    1. Only tour operators that sell packages abroad
    2. Only registrants that choose to join it
    3. Only agencies with over $2 million in sales
    4. Every registrant
    Show answer and explanation

    Correct answer: Every registrant

    Every registrant must participate in the Fund; TICO's board administers it and holds the money in trust for approved claimants.

    Based on: O. Reg. 26/05 s. 50; checked 2026-10-24

    Official reference ↗

17. A registrant receives a written request for information about a complaint. When must it reply?

    1. Only if the customer consents
    2. Within one year
    3. As soon as practicable
    4. Only if a court orders it
    Show answer and explanation

    Correct answer: As soon as practicable

    A registrant that receives a written request for information about a complaint must provide the information as soon as practicable; the request indicates the nature of the complaint.

    Based on: Act s. 16(3); checked 2026-10-24

    Official reference ↗

18. 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
    Show answer and explanation

    Correct answer: Two years after the director first knew the facts

    No proceeding may be commenced more than two years after the facts on which it is based first came to the knowledge of the director.

    Based on: Act s. 31(4); checked 2026-10-24

    Official reference ↗

19. 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
    Show answer and explanation

    Correct answer: Notify and offer a full refund or acceptable alternative

    Substitution of a different cruise ship is one of the events that requires prompt notice and an offer of a full and immediate refund or comparable alternate travel services acceptable to the customer.

    Based on: O. Reg. 26/05 s. 40(1) para 2; checked 2026-10-24

    Official reference ↗

20. After a false advertising order, for what maximum period can TICO's registrar require ads to be pre-approved?

    1. 90 days
    2. 30 days
    3. One year
    4. Two years
    Show answer and explanation

    Correct answer: 90 days

    For the Travel Industry Act, the prescribed period for pre-approval of advertising after a false advertising order is 90 days.

    Based on: O. Reg. 26/05 s. 49; checked 2026-10-24

    Official reference ↗

21. 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
    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 ↗

22. After two consecutive annual financial filings, when is section 25 security returned, apart from deductible Fund claims?

    1. Never, because it becomes part of the Fund
    2. After its first month of business, with bank interest added
    3. Within a reasonable time once compliance concerns are resolved
    4. When the owner reaches retirement age
    Show answer and explanation

    Correct answer: Within a reasonable time once compliance concerns are resolved

    After two consecutive annual filings, the registrar returns security within a reasonable time if there are no compliance concerns. Where concerns exist, they must first be resolved. Paid or anticipated eligible Fund claims attributable to the registrant’s failure are deducted; return is not an automatic fixed-date refund.

    Based on: O. Reg. 26/05 ss. 25(2)–(3); checked 2026-10-24

    Official reference ↗

23. Which personnel must hold the applicable TICO certification to sell travel or advise for a registered Ontario agency?

    1. Anyone selling travel or giving travel advice for an Ontario agency
    2. Only people who work for tour operators, not for retail agencies
    3. Only the owner of each registered travel agency in Ontario
    4. Only agents who sell international air tickets to consumers
    Show answer and explanation

    Correct answer: Anyone selling travel or giving travel advice for an Ontario agency

    New sellers and advisers acting for a registered Ontario agency must complete the required TICO program and exam. Existing valid certifications are not cancelled by the 2026 program change; staff who only take messages or do back-office accounting have different duties.

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

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24. 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
    Show answer and explanation

    Correct answer: What was said, the date, the method and the customer's choice

    Registrants keep a file and note what information was communicated, the date, the method of communication and the customer's choice; these files are kept as business records.

    Based on: O. Reg. 26/05 s. 40(3); checked 2026-10-24

    Official reference ↗