The bill amends the Revised Code of Washington (RCW) to enhance regulations surrounding service contracts and protection product guarantees. It clarifies key definitions such as "administrator," "consumer," "protection product," and "service contract," while introducing new obligations for service contract and protection product guarantee providers. These obligations include maintaining a reimbursement insurance policy, establishing funded reserve accounts, and ensuring a minimum net worth or stockholder's equity. The bill also specifies conditions for issuing service contracts, including a mandatory refund policy for contract returns within designated timeframes and penalties for delayed refunds, thereby strengthening consumer protection.

Additionally, the bill updates the minimum net worth requirement for protection product guarantee providers and establishes clearer guidelines for the return and refund process of service contracts. It mandates that service contracts allow holders to return the contract within 30 days for a full refund if no claims have been made, with specific conditions for cancellation fees. The bill further clarifies the relationship between service contract providers and insurers, stating that providers act as agents for each insurer that issued reimbursement insurance policies. It also emphasizes that violations of this chapter are considered unfair or deceptive acts under the consumer protection act, allowing affected holders to pursue legal action against both providers and insurers. Notable insertions include the specification of "each" insurer and the addition of "or policies" in relation to reimbursement insurance, enhancing clarity and accountability.

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