TICO Certification Practice Test 6

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

1. A customer paid the agent in full, and the wholesaler sent the agent the customer's documents, but the agent never paid the wholesaler. What must the wholesaler do?

   1. Refuse service and refer the customer to TICO
   2. Cancel the booking until the customer pays again
   3. Still provide the travel services the customer bought
   4. Charge the customer the unpaid amount at the hotel check-in
   Show answer and explanation

   Correct answer: Still provide the travel services the customer bought

   A wholesaler may not refuse to provide services the customer paid the agent for if it has already given the agent tickets or documents for the customer, despite the agent's failure to pay.

   Based on: O. Reg. 26/05 s. 43; checked 2026-10-24

   Official reference ↗

2. 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?

   1. $8,000, as each person is covered up to $5,000
   2. $10,000, two full per-person limits
   3. $5,000, the limit for each booking
   4. $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

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3. Which step may the registrar take when handling a complaint?

   1. Publish the customer's name and complaint online
   2. Cancel the customer's trip and keep the deposit
   3. Mediate, warn in writing, or refer it to the discipline committee
   4. Order the registrant to pay the customer triple damages on the spot
   Show answer and explanation

   Correct answer: Mediate, warn in writing, or refer it to the discipline committee

   In handling complaints, the registrar may attempt to mediate or resolve them, give a written warning, refer the matter to the discipline committee, propose action against the registration, or take other action under the Act.

   Based on: Act s. 16(4); checked 2026-10-24

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4. Which condition must a stranded traveller meet to be reimbursed for trip completion?

   1. Book the most expensive flight home that is available
   2. Make every reasonable effort to get comparable services
   3. Wait at the airport until TICO staff arrive
   4. 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

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5. Which payment method is not itself excluded by the Fund’s standard payment-method rule?

   1. Air miles redeemed with no money paid
   2. A free trip given to the customer as a goodwill gesture
   3. A payment that a third party never made
   4. Cash, cheque, credit card or a similar method
   Show answer and explanation

   Correct answer: Cash, cheque, credit card or a similar method

   Cash, cheque, credit card and similar payment methods are not excluded on that ground. Redeemed travel vouchers have a statutory exception, while a voucher received as a prize remains excluded. A permitted payment method does not by itself establish eligibility; all the other claim conditions still apply.

   Based on: O. Reg. 26/05 s. 57(3) para 6; checked 2026-10-24

   Official reference ↗

6. Under the Travel Industry Act, what is a travel agent?

   1. An airline that sells seats on its own scheduled flights
   2. A person who owns a hotel and rents its own rooms to visiting tourists
   3. Any person who travels for business more than 30 days a year
   4. Someone who sells consumers travel services supplied by others
   Show answer and explanation

   Correct answer: Someone who sells consumers travel services supplied by others

   A travel agent sells, to consumers, travel services provided by another person. End suppliers selling their own services, such as hotels and airlines, are not travel agents for that activity.

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

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7. What does passing the TICO certification exam allow you to do?

   1. Open and run your own travel agency without registering
   2. Sell travel services to Ontario consumers from any country
   3. Sell travel or give travel advice for a TICO-registered agency
   4. Act as a travel insurance agent without another licence
   Show answer and explanation

   Correct answer: Sell travel or give travel advice for a TICO-registered agency

   Passing allows you to sell travel services or provide travel advice to the public on behalf of a TICO-registered Ontario travel agency. Opening your own business still requires registering it with TICO.

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

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8. When a registrant is convicted of an offence, what extra order may the court make?

   1. An order transferring its customers to TICO
   2. An order closing every agency in the same city
   3. An order to pay compensation or make restitution
   4. An order requiring a new TICO exam for all staff
   Show answer and explanation

   Correct answer: An order to pay compensation or make restitution

   In addition to any other penalty, the court that convicts a person may order them to pay compensation or make restitution.

   Based on: Act s. 32; checked 2026-10-24

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9. The registrar orders an immediate temporary suspension and the agency requests a hearing. When does the order expire?

   1. Only when the agency's registration is next renewed by the registrar
   2. 30 days after the order is served on the agency
   3. Immediately once the hearing request is mailed
   4. 15 days after the Tribunal receives the request, unless extended
   Show answer and explanation

   Correct answer: 15 days after the Tribunal receives the request, unless extended

   If a hearing is requested, the immediate suspension expires 15 days after the Tribunal receives the written request, unless the hearing has begun and the Tribunal extends it until the hearing ends.

   Based on: Act s. 12; checked 2026-10-24

   Official reference ↗

10. A corporate travel agency wants a new employee to sell trips. What does the regulation require of that employee?

    1. The applicable TICO certification for selling travel
    2. A separate personal registration as a travel agent
    3. A university degree in tourism management
    4. Five years of experience at another agency
    Show answer and explanation

    Correct answer: The applicable TICO certification for selling travel

    For a new individual employee selling for a corporate agency, section 12 requires the applicable TICO certification. The regulation also addresses written-contract arrangements and legacy section 15(3) conditions. Certification does not personally register that employee as an independent travel business.

    Based on: O. Reg. 26/05 s. 12(3); checked 2026-10-24

    Official reference ↗

11. When does the rule that no price increases are allowed apply?

    1. After the customer has paid in full
    2. Only for trips inside Canada
    3. Within 60 days of departure
    4. After the first deposit has been paid
    Show answer and explanation

    Correct answer: After the customer has paid in full

    Where a contract permits price increases, the invoice must state that no price increases are permitted after the customer has paid in full.

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

    Official reference ↗

12. When may a registrant sell a package that includes air transportation?

    1. When the customer signs a release of all airline claims
    2. Whenever the airline's fare is the lowest available
    3. Only if the airline is based in Canada and Canadian-owned
    4. When the carrier has required licences, approvals or applications, and regulatory compliance
    Show answer and explanation

    Correct answer: When the carrier has required licences, approvals or applications, and regulatory compliance

    A registrant may not sell travel services including air transportation unless the carrier is licensed in all relevant jurisdictions, has or has applied for the necessary approvals and complies with Canadian and other regulatory requirements.

    Based on: O. Reg. 26/05 s. 47; checked 2026-10-24

    Official reference ↗

13. An agency follows the section 27 trust-account model. How must it hold customer money received for travel services?

    1. In the owner's personal savings account until the day of departure
    2. In cash in a locked safe at the agency's office
    3. In any business account, mixed with operating funds
    4. In trust, in a designated Travel Industry Act trust account
    Show answer and explanation

    Correct answer: In trust, in a designated Travel Industry Act trust account

    Under section 27, qualifying money actually received from customers is held in trust in an account designated as a Travel Industry Act trust account. Section 28 provides a distinct security alternative for qualifying established registrants; this is not permission to mix trust receipts with operating money.

    Based on: O. Reg. 26/05 s. 27(1)–(2); checked 2026-10-24

    Official reference ↗

14. An ad uses an artist's drawing of a hotel pool. What must it do?

    1. Get the hotel's written consent from TICO
    2. Nothing, since drawings are never considered misleading
    3. Use the drawing only in radio ads
    4. Depict it accurately and say clearly it is not a photo
    Show answer and explanation

    Correct answer: Depict it accurately and say clearly it is not a photo

    A picture that is not a photograph must accurately depict what is represented and the ad must clearly say it is not a photograph; a photograph must be accurate and identified as a photograph of the thing advertised.

    Based on: O. Reg. 26/05 s. 35; checked 2026-10-24

    Official reference ↗

15. Where must business records normally be kept?

    1. At the principal place of business or an approved place
    2. Only in a cloud storage service chosen by the registrar
    3. At TICO's office in Mississauga
    4. At the home of any employee who has a key
    Show answer and explanation

    Correct answer: At the principal place of business or an approved place

    Business records are kept at the registrant's principal place of business, or at another place the registrar approves in writing.

    Based on: O. Reg. 26/05 s. 29(1); checked 2026-10-24

    Official reference ↗

16. A travel agent refunded a customer after a wholesaler failed. What can the agent recover from the Fund?

    1. Only its counselling fee, but not the customer's money
    2. The portion it passed to the wholesaler, plus commission owing
    3. The full price, plus its counselling fee and its staff costs
    4. Nothing, since agents may never claim from the Fund
    Show answer and explanation

    Correct answer: The portion it passed to the wholesaler, plus commission owing

    Assuming the other section 58 conditions are met and the customer would otherwise have an eligible claim, recovery is limited to the customer money passed on, plus commission owing. Counselling fees and other remuneration are excluded. An agent that acquired the rights for resale falls under a separate exclusion.

    Based on: O. Reg. 26/05 s. 58; checked 2026-10-24

    Official reference ↗

17. Besides the existence of a counselling fee, what else must the agent disclose about it?

    1. How it compares with fees at other agencies
    2. Whether it is refundable, and in what circumstances
    3. What percentage of it goes to the counsellor personally as pay
    4. Which supplier will reimburse the customer for it
    Show answer and explanation

    Correct answer: Whether it is refundable, and in what circumstances

    The agent must disclose whether the counselling fee or service charge, or any part of it, is refundable or non-refundable and under what circumstances.

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

    Official reference ↗

18. An agency publishes an ordinary written web advertisement, without the billboard-style space exception. What identifying details must appear?

    1. Its business name, address and TICO registration number
    2. The owner's personal cell phone and home address
    3. The commission it earns from the supplier of the advertised package
    4. The names of staff who will answer questions
    Show answer and explanation

    Correct answer: Its business name, address and TICO registration number

    Section 31 normally requires the business name, address and registration number in non-oral advertising, and prohibits a residential phone number. The identification exception concerns media such as billboards or bus boards with similar space/time limits; it is not a general exemption for online advertising.

    Based on: O. Reg. 26/05 s. 31(2); checked 2026-10-24

    Official reference ↗

19. A cruise has extra terms in the cruise line's contract. What must the agent do?

    1. Refer to those conditions and tell the customer where to review them
    2. Read every term aloud word for word before the sale
    3. Hide them, since only the cruise line's own staff are allowed to explain them
    4. Ignore them, as cruise contracts are outside TICO's rules
    Show answer and explanation

    Correct answer: Refer to those conditions and tell the customer where to review them

    The agent must refer to any other conditions that relate to the transaction and the travel services and advise the customer where those conditions may be reviewed.

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

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20. An amateur hockey team runs a bus trip for its members. Which condition must be met for it to be exempt?

    1. The team must buy trip cancellation insurance for every member on the bus
    2. The bus must return home empty during the tournament
    3. The trip must be sold through TICO's own booking website
    4. The destination is within 2,000 km and customer funds go into trust
    Show answer and explanation

    Correct answer: The destination is within 2,000 km and customer funds go into trust

    Members' groups providing overland travel are exempt if trips are only for members and their purposes, funds go into trust, no one profits, the destination is no more than 2,000 km away and the vehicle stays at the destination.

    Based on: O. Reg. 26/05 s. 2(2) para 8 — Associations; checked 2026-10-24

    Official reference ↗

21. After a sale, the agent learns of a change that might have affected the customer's decision. What must the agent do?

    1. Tell the customer only after the trip ends
    2. Report it to TICO and say nothing to the customer
    3. Wait to see if the customer notices the change
    4. Tell the customer promptly
    Show answer and explanation

    Correct answer: Tell the customer promptly

    If, after purchase, a registrant learns of a change to any matter in a representation that might have affected the decision to buy, it must promptly advise the customer.

    Based on: O. Reg. 26/05 s. 37; checked 2026-10-24

    Official reference ↗

22. How must a computer-generated invoice be identified?

    1. With the customer's birth date
    2. With TICO's logo in the header
    3. With the travel agent's initials only
    4. With a unique identifier
    Show answer and explanation

    Correct answer: With a unique identifier

    Manually prepared invoices must be consecutively pre-numbered and computer-prepared invoices must be assigned a unique identifier.

    Based on: O. Reg. 26/05 s. 38(3); checked 2026-10-24

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23. An applicant has not been registered during the past 12 months and no section 25 exemption applies. What initial security is required?

    1. $50,000
    2. $10,000
    3. $5,000
    4. $1,000
    Show answer and explanation

    Correct answer: $10,000

    A person who has not been registered at any time during the previous 12 months must provide $10,000 in security when applying. It is returned after two consecutive annual financial filings if the registrar has no concerns, less any Fund claims paid.

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

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24. An agent booked a trip on credit and the customer never paid. Can the agent claim from the Fund?

    1. Yes, for the full price of the trip
    2. No, the customer must have paid through it
    3. Yes, but only half of the price
    4. Yes, if the trip was cancelled by TICO itself
    Show answer and explanation

    Correct answer: No, the customer must have paid through it

    A travel agent is not entitled to reimbursement unless the customer paid for the travel services to or through the agent and the agent passed the payment on to a wholesaler or end supplier.

    Based on: O. Reg. 26/05 s. 63; checked 2026-10-24

    Official reference ↗