INSURANCE COMMISSIONER

[Insurance Commissioner Matter R 2025-09—Filed November 18, 2025, 8:50 p.m.]

Preproposal statement of inquiry was filed as WSR 25-17-073.

Title of Rule and Other Identifying Information: Relating to service contracts, motor vehicle service contracts, and protection product guarantee and service contract providers.

Hearing Location(s): January 6, 2026, at 1:00 - 2:00 p.m. PT, via Zoom at https://wa-oic.zoom.us/meeting/register/i-TVDuQNTbS8HpHDDnTEKw. Written comments are due by 11:59 p.m. on January 7, 2026. Written comments can be emailed to rulescoordinator@oic.wa.gov.

Date of Intended Adoption: January 8, 2026.

Submit Written Comments to: Rules Coordinator, P.O. Box 40255, Olympia, WA 98504-0255, email rulescoordinator@oic.wa.gov, fax 360-586-3109/3535, beginning November 19, 2025, at 12:00 a.m. PT, by January 7, 2026, at 11:59 p.m. PT.

Assistance for Persons with Disabilities: Contact rules coordinator, phone 360-725-7171, fax 360-586-3109/3535, TTY 360-586-0241, email rulescoordinator@oic.wa.gov, by 5:00 p.m. on January 5, 2026.

Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: HB 1006 allows motor vehicle service contract and protection product guarantee providers additional ways to demonstrate financial responsibility. Rule making is necessary to ensure these statutory changes are reflected in WAC.

Rule making is also necessary to clarify what a motor vehicle service contract is and which contracts must be filed with the office of the insurance commissioner (commissioner) in accordance with RCW 48.110.073. This clarification will require that certain service contracts be filed with and approved by the commissioner before use. The rule making includes, but is not limited to, service contracts covering the following services:

• Tire and wheel repair and replacement.

• Motor vehicle dent, ding, and crease removal.

• Motor vehicle windshield repair or replacement.

• Motor vehicle key fob repair or replacement.

The proposed rule language makes changes to WAC 284-20C-020, 284-110-010, and 284-110-030. The proposed rule language also adds a new section to chapter 284-110 WAC.

Reasons Supporting Proposal: Rule making is necessary to implement HB 1006 and to clarify what a motor vehicle service contract is and which forms must be filed with the commissioner in accordance with RCW 48.110.073.

Statutory Authority for Adoption: RCW 48.02.060 (3)(a) and 48.110.150.

Statute Being Implemented: Chapter 50, Laws of 2025 (HB 1006).

Rule is not necessitated by federal law, federal or state court decision.

Name of Proponent: Patty Kuderer, Washington state insurance commissioner, governmental.

Name of Agency Personnel Responsible for Drafting: Tyler Langford, P.O. Box 40255, Olympia, WA 98504-0255, 360-725-7171; Implementation: Todd Lovshin, P.O. Box 40255, Olympia, WA 98504-0255, 360-725-7000; and Enforcement: Sofia Pasarow, P.O. Box 40255, Olympia, WA 98504-0255, 360-725-7000.

A school district fiscal impact statement is not required under RCW 28A.305.135.

A cost-benefit analysis is required under RCW 34.05.328. A preliminary cost-benefit analysis may be obtained by contacting Rules Coordinator, P.O. Box 40255, Olympia, WA 98504-0255, phone 360-725-7171, fax 360-586-3109/3535, TTY 360-586-0241, email rulescoordinator@oic.wa.gov.

This rule proposal, or portions of the proposal, is exempt from requirements of the Regulatory Fairness Act because the proposal:

Is exempt under RCW 19.85.025(3) as the rule content is explicitly and specifically dictated by statute.

Is exempt under RCW 19.85.025(4).

Explanation of exemptions: This rule's amendments to chapter 284-110 WAC are necessary to implement HB 1006 and therefore are exempt from the requirements of the Regulatory Fairness Act. The rule's amendment to WAC 284-20C-020 only impacts service contract providers who issue contracts for the services listed in RCW 48.110.020 (18)(b)(i) through (iv). These providers or their parent companies employ more than 50 employees, and therefore are not considered small businesses.

Scope of exemption for rule proposal:

A copy of the detailed cost calculations may be obtained by contacting Rules Coordinator, P.O. Box 40255, Olympia, WA 98504-0255, phone 360-725-7171, fax 360-586-3109/3535, TTY 360-586-0241, email rulescoordinator@oic.wa.gov.

Insurance Commissioner

AMENDATORY SECTION(Amending WSR 13-12-038, filed 5/30/13, effective 7/1/13)

WAC 284-20C-020General motor vehicle service contract filing rules.

Filers and providers must submit complete filings that comply with these rules:

(1) Filings must comply with the filing instructions and procedures in the SERFF Industry Manual available within the SERFF application and Washington State Motor Vehicle Service Contract Filing Instructions.

(2) Filers must submit every service contract to the commissioner electronically using SERFF.

(a) Every service contract filed in SERFF must be attached to the form schedule.

(b) All written correspondence related to a service contract filing must be sent in SERFF.

(3) Filers must not combine "prior approval" and "use and file" contracts in one filing. Filers must file these types of contracts separately:

(a) Contracts filed under RCW 48.110.073(2); or

(b) Contracts filed under RCW 48.110.073(3).

(4) All filed contracts must be legible for both the commissioner's review and retention as a public record. Filers must submit new and replaced contracts to the commissioner for review in final printed form displayed in ten-point or larger type.

(5) Each contract must have a unique identifying number and a way to distinguish it from other editions of the same contract.

(6) Filers must submit a completed compliance checklist with each new motor vehicle service contract as supporting documentation. If the filing includes more than one new contract, the filer may:

(a) Complete a separate checklist for each motor vehicle service contract; or

(b) Complete one checklist and submit an explanatory memorandum that lists any material differences between the filed contracts.

(7) For the purposes of this chapter, all service contracts covering motor vehicles including, but not limited to, service contracts that perform the services listed in RCW 48.110.020 (18)(b)(i) through (iv), must be filed with and approved by the commissioner in accordance with RCW 48.110.073 (2) or (3).

(a) If a service contract provider has already included a contract for the services listed in RCW 48.110.020 (18)(b)(i) through (iv) in a form filing that received approval from the commissioner prior to January 1, 2027, the service contract provider is not required to refile the contract in order to comply with this subsection.

(b) For service contracts that perform the services listed in RCW 48.110.020 (18)(b)(i) through (iv), subsection (7) of this section is effective January 1, 2027.

AMENDATORY SECTION(Amending WSR 20-24-123, filed 12/2/20, effective 1/2/21)

WAC 284-110-010Definitions.

The definitions in this section apply throughout this chapter.

(1) "Most recent financial statements" means a partial fiscal year financial statement to include year-end totals, if available. For start-up applicants, formed less than one fiscal year, partial fiscal year financial statements shall include the months from formation to current.

(2) "Statutory accounting principles" means the current year accounting practices and procedures manual as adopted by the national association of insurance commissioners. Service contract providers and protection product guarantee providers must follow all statement of statutory accounting principles with a type of issue of "common area" and "property and casualty." Any permitted accounting practices from a domiciliary state regulator shall not be used in determining minimum net worth. Only service contract providers or protection product guarantee providers relying on RCW 48.110.050 (2)(a) or 48.110.075 (2)(a) may elect to use statutory accounting principles.

(3) "Material changes or additions" as referred to in RCW 48.110.030(6) and 48.110.055(7) means the following:

(a) Any financial condition where the registrant, or its parent company if applicable, fails to maintain the net worth requirements under RCW 48.110.030 (2)(c)(i) and (ii) and 48.110.055 (3)(e).

(b) The information referred to in RCW 48.110.030 (2)(a) and (b).

(d) The information referred to in RCW 48.110.055 (2)(b) through (3)(d).

AMENDATORY SECTION(Amending WSR 20-24-123, filed 12/2/20, effective 1/2/21)

WAC 284-110-030Parental guarantee.

Service contract providers or protection product guarantee providers relying on RCW 48.110.050 (2)(c) to demonstrate financial responsibility or assure faithful performance must use the prescribed parental guarantee form that is available on the commissioner's website.

WAC 284-110-040Reimbursement insurance policies insuring service contracts or protection product guarantees.

A service contract provider or protection product guarantee provider that uses a reimbursement insurance policy to demonstrate its financial responsibility or to assure faithful performance of its obligations under RCW 48.110.050 (2)(a) may insure each service contract or protection product guarantee under separate reimbursement insurance policies. However, no service contract or protection product guarantee may be insured by more than one reimbursement insurance policy. For example:

(1) A service contract provider or protection product guarantee provider may insure one or more service contracts or protection product guarantees under Reimbursement Insurance Policy A, and separately insure one or more service contracts or protection product guarantees not covered by Reimbursement Insurance Policy A under Reimbursement Insurance Policy B.

(2) A service contract provider or protection product guarantee provider may not insure a single service contract or a single protection product guarantee under Reimbursement Insurance Policy A and Reimbursement Insurance Policy B. The service contract or protection product guarantee must be insured solely by either Reimbursement Insurance Policy A or Reimbursement Insurance Policy B, not both.