This bill seeks to strengthen the regulation of service contracts and protection product guarantees in Washington State by amending various sections of the Revised Code of Washington (RCW). It clarifies key definitions such as "service contract," "protection product," and "protection product guarantee," while introducing new requirements for providers. These include demonstrating financial responsibility through maintaining a funded reserve account or obtaining a reimbursement insurance policy. The bill also outlines the obligations of providers to issue receipts and copies of contracts to consumers, as well as the conditions under which consumers can return service contracts for a full refund.

Significant amendments include the insertion of language that expands the financial obligations of providers, mandating a minimum net worth of at least $100 million or other means of demonstrating financial stability. The bill specifies that service contracts must allow consumers to return them for a full refund if no claims have been made within a specified timeframe. Additionally, it clarifies the obligations of reimbursement insurance policies and establishes a clear timeframe for contract providers to determine vehicle coverage eligibility. The bill also emphasizes that violations of these regulations are considered unfair or deceptive practices, allowing consumers to seek legal recourse against providers and insurers. Overall, the amendments aim to enhance consumer protection by ensuring adequate financial backing for service contracts and clear communication of consumer rights.

Statutes affected:
Original Bill: 48.110.020, 48.110.050, 48.110.055, 48.110.060, 48.110.073, 48.110.075, 48.110.110, 48.110.140
Bill as Passed Legislature: 48.110.020, 48.110.050, 48.110.055, 48.110.060, 48.110.073, 48.110.075, 48.110.110, 48.110.140