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, as well as issuing receipts and copies of contracts to consumers. The bill also allows consumers to return service contracts for a full refund under specified conditions, enhancing consumer protection.

Significant amendments include the insertion of requirements for providers to maintain a net worth of at least $100 million or demonstrate financial stability through other means. The bill specifies that if a provider uses a reimbursement insurance policy, it must include a copy with its application, and it updates the minimum net worth requirement for applicants to $200,000 with a standardized application fee of $250. Additionally, it clarifies that service contract providers cannot deny claims based on the holder's failure to maintain the vehicle unless it directly relates to the part that failed, and it establishes a 60-day period for providers to determine vehicle coverage eligibility. Violations of these provisions are classified as unfair or deceptive acts under the consumer protection act, allowing affected consumers to take legal action against providers and insurers.

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