UPDATE – While Washington Senate Bill 5978 died in committee, Senate Bill 5977, which included components of SB 5978, was enacted by the Washington Legislature and became effective on June 12, 2014.
The new law includes the following:
- Revises definition of “protection product” (a.k.a. vehicle protection product), to include a “protective chemical, substance, device or system” . The benefits offered under a Protection Product Guarantee must be tied to the purchase of a physical protection product that is formulated or designed to make a specified loss or damage less likely to occur once it is properly applied to a vehicle.
- More clearly allows for road hazard benefits in a MV service contract and adds a definition of “road hazard” which is a hazard that is encountered while driving a motor vehicle including potholes, rocks, wood debris, metal parts, glass, plastic, curbs or composite scraps.
- Expressly authorized MV service contracts to provide Paintless Dent Repair, Windshield Crack Repair benefits and Key/Key Fob replacement benefits.
Lastly, the new law also now allows providers wishing to offer service contracts on either consumer goods or vehicle to furnish audited financial statements in connection with its application for registration.
