Trip Cancellation & Travel Insurance Flashcards
7 cards from real CTA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Trip Cancellation & Travel Insurance flashcards as text
A travel agent sells a policy without being a licensed insurance agent. In most U.S. states, this is:
Answer: Illegal and could result in fines or loss of travel agency license
In most U.S. states, selling insurance without the appropriate license is illegal and can result in significant penalties.
What is the primary purpose of the 'free look' period in a travel insurance policy?
Answer: It gives the policyholder time to review and return the policy for a full refund
The free look period (typically 10–15 days) allows the purchaser to review the policy and receive a full refund if unsatisfied.
A traveler is stranded abroad due to a covered delay and needs a hotel room. Which documentation is most critical when filing a claim?
Answer: Receipts and proof of the delay from the carrier
Receipts for expenses and official documentation of the delay (e.g., airline statement) are required to substantiate a travel delay claim.
Which of the following scenarios would most likely trigger the 'supplier default' or 'financial insolvency' benefit in a travel insurance policy?
Answer: A cruise line declares bankruptcy and cancels all sailings
Supplier default coverage activates when a travel provider (like a cruise line) ceases operations due to financial insolvency.
A traveler books a trip to a destination that subsequently is placed under a U.S. State Department Level 4 'Do Not Travel' advisory. Under a standard policy, can they cancel and receive full reimbursement?
Answer: It depends — some policies cover it, others do not; CFAR is the safest option
Coverage for government travel advisories varies by policy; CFAR is the most reliable way to ensure reimbursement in this scenario.
When should a travel agent recommend that clients purchase travel insurance relative to their trip deposit?
Answer: As soon as the initial deposit is made
Purchasing insurance at the time of initial deposit maximizes coverage, including time-sensitive benefits like pre-existing condition waivers and CFAR.
A client asks about 'accidental death and dismemberment' (AD&D) coverage in their travel policy. What does this benefit provide?
Answer: A lump-sum payment if the traveler dies or loses a limb in a covered accident
AD&D pays a scheduled lump-sum benefit upon accidental death or the loss of a limb or sight during the covered trip.