The bill amends the Revised Code of Washington (RCW) to enhance consumer protection regarding service contracts and protection product guarantees. It introduces new definitions, such as "protection product guarantee," and clarifies the obligations of providers, including requirements for financial responsibility. Key amendments require providers to demonstrate financial stability through means like maintaining a funded reserve account and obtaining reimbursement insurance policies. The bill also establishes a clear process for consumers to return service contracts and receive refunds, including specific timeframes and conditions under which refunds must be issued.

Additionally, the bill updates the minimum net worth requirement for service contract providers to $200,000 and adjusts the application fee to $250. It specifies that service contract providers cannot deny claims based on the holder's failure to maintain a vehicle unless directly related to the failed part, and it sets a 60-day timeframe for providers to determine vehicle eligibility for coverage. The bill also clarifies the relationship between service contract providers and insurers, categorizing violations as unfair or deceptive practices under the consumer protection act, thus allowing consumers to take legal action against providers and insurers. Overall, the bill aims to ensure that service contract providers maintain adequate financial backing and uphold 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
Session Law: 48.110.020, 48.110.050, 48.110.055, 48.110.060, 48.110.073, 48.110.075, 48.110.110, 48.110.140