Final answer:
The replacing insurance company must provide a Buyer's Guide to the applicant containing an unconditional refund provision before the application process is completed. This informs them about their rights and the terms of the unconditional refund.
Step-by-step explanation:
When replacement is involved, the replacing insurance company must provide a Buyer's Guide to the applicant of a policy that contains an unconditional refund provision before the applicant completes the application process. This is an essential step as it informs the applicant about the terms, guarantees, and the right to an unconditional refund. Guarantees, warranties, and service contracts are forms of explicit reassurance, while other industries may have unstated guarantees. For instance, movie theatres sometimes refund tickets, and restaurants might allow dish exchanges or bill reductions for unsatisfied customers, but these are not typically advertised and are at the discretion of the business.