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Certified Travel Associate (CTA) > Travel Insurance > Flashcards

Travel Insurance Flashcards

1
Q

Pre-existing medical conditions are not covered by travel insurance.
True or False

A

False

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2
Q

Trip cancellation/trip interruption insurance covers all of the following, EXCEPT

a. Carrier-caused delays
b. Financial default by the airline
c. acts of terrorism
d. inclement weather

A

a. Carrier-caused delays

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3
Q

If your clients need coverage for additional travel expenses after losing a passport, money, or travel documents, their policy should include what kind of insurance?

a. trip delay
b. trip cancellation/trip interruption
c. baggage delay
d. trip inconvenience

A

a. trip delay

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4
Q

Medicare does not provide any coverage while you are a passenger on a cruise ship registered in a foreign country.
True or False

A

True

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5
Q

If your clients injure themselves before trip departure, their policy should include

a. trip cancellation/trip interruption insurance
b. travel accident insurance
c. trip delay insurance
d. medical/dental insurance

A

a. trip cancellation/trip interruption insurance

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6
Q

If your client misses her plane due to a traffic accident, even though she was not involved, she is covered.
True or False

A

True

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7
Q

If you sell 1,000 travel insurance policies at $100 each and earn a 35 percent commission, what is your total commission income?

a. $35.00
b. $350.00
c. $3,500.00
d. $35,000.00

A

d. $35,000.00

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8
Q

Your client is covered, under most travel insurance policies, if he is unable to travel because his employer canceled his vacation.
True or False

A

False

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9
Q

If, during her trip, your client drops her camera in the pool and ruins it, she is covered by her baggage coverage insurance.
True or False

A

True

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10
Q

The benefits of offering insurance for the agent and agency include

a. increased customer confidence/loyalty
b. additional commission
c. partial protection from litigation
d. al of the above

A

d. all of the above

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11
Q

Insurance coverage and assistance services that safeguard the consumer before, during, and after the trip.

A

Travel Protection

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12
Q

Trip cancellation and interruption benefits account for ___% of the travel protection products purchased

A

85%

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13
Q

Travel and medical evacuation products account for ___% of the policies sold.

A

7%

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14
Q

Travel suppliers account for ____ of all travel insurance policies sold.

A

half

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15
Q

What does travel insurance do?

A

Protect your clients’ investment if something goes wrong due to illness, weather or other unforeseen circumstances

Provide 24-hour emergency medical referral and assistance during travel (including medical evacuation)

Reimburse unexpected travel expenses your clients may incur due to an emergency

Protect your clients during a medical emergency

Provide medical assistance to your clients abroad

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16
Q

This type of coverage covers the cost of forfeited, nonrefundable, unused payment or deposits due to

  • Sickness, injury, or death of the client, family member, or traveling companion whether traveling with the client or not.
  • Financial default or bankruptcy of a tour operator, cruise line, or airline; see policy for details.
  • Adverse weather or natural disasters resulting in the complete cessation of travel services
  • Acts of terrorism
  • Organized labor strikes
  • Involuntary employer termination of employment or layoff — varies by company
A

Trip Cancellation/Trip Interruption

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17
Q

Reimburses for additional accommodation, meal and transportation expenses incurred for delays while en route to or from your destination due to

  • Carrier delay (caused by mechanical problems or inclement weather)
  • Lost passport, money, or travel documents (substantiated by a police report)
  • Injury or sickness of insured or traveling companion
  • Quarantine, hijacking, strike, natural disasters, terrorism or riot
A

Trip Delay

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18
Q

Reimburses for expenses incurred due to theft or the mysterious disappearance of personal property. This also includes damage to your baggage and personal effects. Most insurance providers have strict limitations on the maximum reimbursement for items, such as jewelry, watches, cameras and other electronics.

A

Baggage Loss

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19
Q

Pays for the purchase of essential items (clothing and personal articles) if the insured’s bags are delayed. Policies vary in coverage, based on the duration of the delay.

A

Baggage Delay

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20
Q

Reimburses expenses incurred due to sickness or injury that occurs while traveling.

A

Medical/Dental Expense

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21
Q

Covers the cost of damage to, or theft of, a rental car. Many credit cards offer secondary coverage.

A

Collision Loss/Damage Insurance

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22
Q

Emergency medical evacuation covers transportation to a hospital or medical facility to treat an unforeseen sickness or injury. This is typically to the closest hospital or medical facility capable of providing treatment. Medical repatriation covers transportation to your primary residence or to a hospital or medical facility closest to your primary place of residence.

A

Emergency Medical Evacuation and Repatriation

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23
Q

Provides cash payment for accidental loss of life or limb while traveling.

A

Accidental Death and Dismemberment Insurance

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24
Q

What is CFAR or Cancel for Any Reason Insurance?

A

An optional benefit that offers your clients the opportunity to cancel their trip for any reason not listed in the travel policy. This gives your clients freedom and flexibility when making their travel plans.

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25
Q

Most insurance companies now provide coverage for ______ as long as the client buys the plan within a certain time of making the initial trip deposit.

A

pre-existing conditions

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26
Q

_____ means that it pays first — the insured party is directly reimbursed by the insurance company for covered expenses.

A

Primary coverage

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27
Q

A travel insurance policy with _______ would require you to first submit all expenses to your health insurance company, and then would reimburse you for the deductibles, coinsurance, and other expenses not covered.

A

secondary coverage

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28
Q

Your client is unable to travel because his employer canceled his vacation. Is he covered?

A

No. Business and contractual obligations are general exclusions under the policy.

29
Q

During her trip, your client drops her camera in the pool and ruins it. Is this covered under her policy?

A

Yes. Baggage coverage is primary for all covered items for the duration of the trip.

30
Q

A truck overturns on the freeway. Your client is not involved in the accident, but she misses her flight. Is your client covered?

A

Yes. Coverage applies when a covered unforeseen circumstance prohibits your client from departing as scheduled.

31
Q

Your client suffers a fall and fractures her ankle during her trip. She has no other medical insurance, and her hospital bill is $700. Is your client covered 100%?

A

Yes. There are no daily limits and no deductibles on medical coverage, and your client is eligible for expenses up to one year from the date of the injury.

32
Q

Your client saw a doctor two weeks before she booked a trip and purchased insurance. She was diagnosed with cancer, and treatment was recommended. Will she be covered if she cancels her trip?

A

Yes. As long as your client purchases the insurance within the specified time, all pre-existing medical conditions are covered if part of the policy.

33
Q

If your client is on her trip, needs medical care, and doesn’t know what to do, whom should she call?

A

On each Certificate of Insurance provided to your clients once they purchase coverage, there are tool-free and direct numbers to put your clients in direct contact with someone who will coordinate any needs they have.

34
Q

My clients’ financial investment will be reimbursed if they have to cancel their trip due to health reasons or any unforeseen circumstance. They can rest assured that their deposit monies are protected.

A

Trip Cost/Trip Cancellation and Interruption

35
Q

If my clients’ trips are delayed, they will not have to worry about paying additional money for accommodations or substitute transportation.

A

Trip Delay

36
Q

If my clients’ bags are most or misplaced by the airline, replacement of their personal possessions will be covered. They can travel with confidence that even if the worst should happen (e.g., their cruise sails and their bags are not onboard) they will be able to buy what they need and be reimbursed by the insurance company.

A

Loss of Baggage and Travel Documents

37
Q

If my clients’ bags are delayed for any reason, replacement of their personal possessions will be covered up to the limit of coverage. They can travel with confidence that even if the worst should happen (e.g., their cruise sails and their bags are not onboard) they will be able to buy what they need and be reimbursed by the insurance company.

A

Baggage Delay and Damage

38
Q

If mt clients get sick or injured while on the trip, their expenses will be covered. Again, they can have peace of mind that their medical needs will be taken care of.

A

Medical/Dental Expense

39
Q

Emergency medical transportation is extremely expensive. If my clients need emergency medical transportation, they can rest assured that the expense will be covered, including evacuation and repatriation as needed. All logistics will be provided by trained assistance coordinators.

A

Emergency Medical Evacuation and Repatriation

40
Q

No matter where my clients are, or when they need help, answers and action are just a phone call away.

A

24 Hour Emergency Hotline

41
Q

Travel insurance impacts the bottom line by ____

A

Through lucrative commission rates and by possibly protecting your commission.

Travel insurance commissions are in the range of 20 to 35 percent and can be impressive. Even if the client cancels the trip, those commissions can be protected if the insurance provider offers commission protection. Several companies do sell or include commission protection, with certain restrictions and conditions.

42
Q

Travel insurance protects your agency by ___

A

In a litigious environment, fraught with travel scams, fraud, and bankruptcy, small, independent businesses, like travel agencies, need to look for ways to minimize business risk and personal liability. Woe unto the travel agent whose customer loses money because of trip cancellation and seeks to blame the agent for not having recommended that the client buy travel insurance. Today, travel agencies may want to look at automatic invoicing of travel insurance as a part of a total trip cost. If the traveler declines coverage, the agency should require the traveler to sign a waiver indicating that insurance was offered and declined.

In addition, travel insurance can be relatively easy to offer, once agents get over their fear of addressing the need for their clients to protect themselves and their investment. It should not take a great deal of time or effort to invite your clients to read through a travel insurance provider’s information, or to discuss in brief the advantage of having travel insurance should the unexpected happen.

43
Q

Travel insurance builds customer loyalty by ___

A

Offering travel insurance to your clients can help build confidence and loyalty among your customer base. In truth, by offering travel insurance you are providing your clients with a valuable service that they may not have thought they needed.

44
Q

Specific answers to clients’ individual travel insurance questions should be referred to ____.

A

the insurance provider

45
Q

Why should I buy travel insurance?

A

If an illness, accident, or sudden change in plans forces you to cancel or interrupt travel plans, you face two major financial losses: (1) money you’ve invested in nonrefundable prepayments and (2) medical expenses that aren’t covered by your health insurance. That’s why more and more travelers are turning to travel insurance to protect their travel investment.

46
Q

Why is travel insurance so expensive?

A

The cost of travel insurance is based on the value of your trip. The more you have invested in your trip, the more you need to protect it. Travel insurance covers you for losses caused by trip cancellation and interruption, medical expenses, baggage loss, and trip and baggage delay. When you consider all the protection you get, travel insurance is actually a great value.

47
Q

Why does your policy work on a reimbursement basis?

A

As with any type of insurance, there are provisions that must be met before a claim can be paid. Receipts for expenses provide proof of loss and help expedite the claim payment. In the event of stolen items, a police report must be submitted.

48
Q

Why do you offer the pre-existing condition waiver only within a certain number of days from the initial trip deposit date?

A

Waiving the exclusion for pre-existing medical conditions is a valuable benefit to the consumer. If, for example, a traveler is asthmatic and has to cancel a trip because of the condition, he or she will be reimbursed for nonrefundable travel expenses. We offer this as an extra benefit to travelers. This gives them some time to determine whether or not to purchase our travel insurance policy.

49
Q

When I’m traveling outside the United States and renting a car, will your collision damage waiver (CDW) policy be accepted by the car rental company?

A

The collision damage waiver is a cost-effective alternative to expensive insurance offered by rental car companies. In addition, the coverage is primary — that means you only need to file a claim with one company to get reimbursement for covered losses.

While most car rental companies accept the CDW policy, a few won’t. You may want to check with the rental agency prior to purchasing the coverage.

50
Q

How long does it take to process a claim?

A

Typically, insurance companies work to process a claim seven and 10 business days from receipt provided all supporting documentation is included. This can vary based on the insurance provider and the type of claim being filed.

51
Q

Why do you not offer a policy for just medical coverage?

A

Insurance protects your total travel investment (comprehensive coverage protects that investment for a number of potential situations, not just medical).

52
Q

I don’t need many of these coverages; I am just interested in trip cancellation.

A

Our policy is designed to cover you from the moment you make a deposit until the moment you return home. We provide protection for unforeseen events that actually happen to travelers. (If your office offers a wide variety of policies you may be able to select a policy that best meets their needs. Some companies offer several tiers of coverage.)

53
Q

Why are these programs more expensive than the one that is offered by my tour operator, and what are the differences between the programs?

A

Tour operators typically offer a cancellation protection waiver, which is much different than travel insurance. A protection waiver really doesn’t qualify as insurance. Instead, the cruise line or tour operator agrees to waive its own cancellation penalties if the client has to cancel his or her trip for a covered reason. These waivers may not cover cancellations within 24 to 72 hours of departure, and most don’t offer trip interruption benefits—if you have to return home during a cruise or vacation, you may not be covered. You also have no coverage if the tour operator or cruise line goes into bankruptcy or financial default.

A more comprehensive travel insurance policy offers coverage for a wide range of accidents or incidents that may force you to cancel a trip. Some insurance companies provide coverage for any “unforeseen incident” that is not specifically excluded in the policy. This is also known as “Cancel for Any Reason” insurance. Some policies you can offer provide extra care for the insured, such as concierge services meeting the needs of the high-end consumer. There are also policies available for travelers participating in higher-risk activities.

54
Q

I’m young and in good health. Why should I be concerned about pre-existing conditions?

A

The pre-existing conditions waiver will protect your travel investment even if it is invoked due to illness of a parent or other family member who is not traveling with you.

55
Q

Doesn’t my credit card or regular medical insurance policy provide coverage for me while I am traveling?

A

Read the fine print on your credit card and medical insurance policies. Many plans may offer help but do not cover expenses. There may be deductibles you are required to pay before your health plan kicks in.

56
Q

Can I cancel my trip for any reason and get all my money back?

A

It depends. Most plans will not cover you if you simply change your mind or if business obligations prevent you from traveling. You would need to buy Cancel for Any Reason insurance to cover this.

57
Q

The best tactics for increasing your travel insurance sales include:

A
  1. Offer insurance with every airline ticket, cruise, or tour you book.
  2. Automatically calculate the cost of insurance with each trip you book.
  3. Quote the insurance as part of the total trip cost.
  4. Include the cost of insurance on each client’s invoice. This could dramatically increase your insurance sales.
  5. Stress the value of an insurance purchase, such as high levels of protection, low cost, and the peace of mind that the consumer has protected his or her vacation investment.
  6. If the insurance is declined, have the client sign a waiver form. You are actually offering the insurance for a second time and requiring them to sign off on their decision. You are also protecting yourself from possible liability issues.
  7. Use your travel insurance partner’s website as a resource. Let your clients call the insurer directly to ask questions. The insurer’s representatives can help close the sale.
  8. Be sure to email quotes directly from the travel insurance providers website. This will help guarantee that product and pricing information is accurate.
58
Q

Travel insurance coverage provides cash payment for accidental loss of life or limb while traveling.

A

Accidental death and dismemberment insurance

59
Q

Travel insurance coverage that reimburses for the purchase of essential items, such as toiletries and items needed until baggage is recovered if baggage is delayed more than a certain number of hours.

A

Baggage delay

60
Q

Travel insurance coverage that reimburses for expenses incurred due to theft, damage, or the mysterious disappearance of personal property.

A

Baggage loss

61
Q

Travel insurance coverage that reimburses the cost of damage to, or theft of, a rental car.

A

Collision loss/damage

62
Q

Travel insurance coverage that pays for transportation ordered by a doctor to the nearest adequate medical facility (a facility nearest to the insured’s location that can handle the condition). Pays up to the policy limit for a special medical escort if recommended in writing by a doctor. Medical repatriation helps cover costs for returning home once the insured is able.

A

Emergency medical transportation

63
Q

The reasonable and necessary cost of treatment for injury or sickness—provided by a medical doctor, dentist, or professional nurse on an emergency or urgent basis—that is actually incurred by the insured.

A

Medical/dental expense

64
Q

An injury, illness of the clients (or that of a family member or traveling companion) that existed during a defined time frame before the date the client bought the insurance and paid a deposit for the trip.

A

Pre-existing condition

65
Q

Coverage that pays 100 percent of cost to the covered benefit amount. (That is, the travel insurance company pays first. There is no need to file with another carrier such as a medical or homeowner’s insurance company, airlines, and so on.) No deductible or copayment is required.

A

Primary coverage

66
Q

Insurance coverage and assistance services that safeguard the consumer before, during, and the trip.

A

Travel Protection

67
Q

Travel insurance coverage that protects the insured’s financial investment if his or her trip is canceled or interrupted for covered, unforeseen reasons such as a medical condition, bad weather, unannounced labor disputes, termination of employment (only some companies), or financial default.

A

Trip cancellation/trip interruption

68
Q

Travel insurance coverage that reimburses up to policy limits each day for reasonable additional accommodations and travel expenses, such as meals, taxis, and so on, when client is delayed more than a certain number of hours.

A

Trip delay

Certified Travel Associate (CTA) (16 decks)

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