Florida lets home warranty buyers cancel within 10 days of purchase; Washington allows service contract returns within 30 days if no claim is made.
Key takeaways for service contract refund and cancellation lines
- Florida Senate rules allow a home warranty purchaser to cancel within 10 days of purchase, requiring a refund of 100 percent of the gross premium paid less any claims paid. Florida Senate
- Washington State Legislature statutes permit returning a service contract within 30 days if no claim has been made, with a full purchase price refund unless returned 10 or more days after purchase. Washington State Legislature
- The Washington provider may charge a cancellation fee not exceeding $25 for contracts returned 10 or more days after purchase. Washington State Legislature
Which refund clock belongs on a service contract price
Florida’s 10-day cancellation window and Washington’s 30-day return period are distinct clocks that apply to different product types under their respective state laws. Do not mix them on one offer or assume one fits every service contract you price.
The Florida Senate states that any home warranty agreement may be canceled by the purchaser within 10 days after purchase. It is not a general cancellation period for all service contracts in Florida. When pricing a home warranty, record this 10-day mark as the deadline for the purchaser to cancel the home warranty agreement under that statute. The same Florida Senate page notes that the refund must be 100 percent of the gross premium paid, less any claims paid on the agreement. Record that percentage alongside the day count so the refund calculation matches the statutory language.
The Washington State Legislature requires providers to permit the service contract holder to return the contract within 30 days of its purchase if no claim has been made. Under this Washington rule, the provider must refund the full purchase price unless the holder returns the contract 10 or more days after purchase. In that later case, the provider may charge a cancellation fee not exceeding $25. The key difference here is the conditional fee: Washington allows a small deduction if the return happens after the first 10 days. Washington also adds a 10 percent penalty to any refund that is not paid within 30 days of return of the contract to the provider. Write both the 30-day return window and the penalty trigger on the offer so the timeline is clear to the customer.
If no claim has been made and a contract holder returns the contract after 30 days, the Washington State Legislature states the provider shall refund the purchase price in proportion to either elapsed time or mileage computed from the date the contract was purchased and the mileage on that date, less a cancellation fee not exceeding $25. This later-return rule differs from the initial 30-day window because it uses a proportional calculation rather than a full refund. Record which method applies to your product when you set up the refund logic.
On the service-contract offer you are pricing today, write the cancel-or-return days from the state statute that covers that contract and the refund words that same page uses.
Florida's home-warranty days and refund percent
The Florida Senate specifies that any home warranty agreement may be canceled by the purchaser within 10 days after purchase. Print this 10-day window on the contract line item to match the source language. The same page states that the refund must be 100 percent of the gross premium paid, less any claims paid on the agreement. Record both the cancellation clock and this refund calculation on your offer document before saving the price. Apply that deduction to the gross premium before you quote the refund amount.
Beyond the cancellation right, the Florida Senate requires that every home warranty be mailed, delivered, or electronically transmitted to the warranty holder within 45 days after the effectuation of coverage. The application is part of the warranty contract document under this rule. Note this delivery deadline in your internal records to track when the paperwork reaches the customer. Additionally, all home warranty contracts must state in conspicuous, boldfaced type that the home warranty may not provide listing period coverage free of charge. Include this bold disclosure on the contract face to comply with the formatting requirement.
| Requirement | Statutory Value | Publisher |
|---|---|---|
| Cancellation Window | 10 days after purchase | Florida Senate |
| Refund Calculation | 100% of gross premium less claims paid | Florida Senate |
| Contract Delivery Deadline | 45 days after effectuation of coverage | Florida Senate |
| Listing Coverage Disclosure | Must state in bold type that the home warranty may not provide listing period coverage free of charge | Florida Senate |
Write the 10-day cancellation line and the 100-percent refund formula on your current offer form today.
Illustrative example: a home warranty refund
Suppose a home warranty has a $100 gross premium and no claims have been paid. A cancellation within 10 days refunds the full $100.
Washington's 30-day return and penalty
The Washington State Legislature sets the return window for service contracts under RCW 48.110.075. Washington State Legislature requires providers to permit the contract holder to return the contract within 30 days of purchase if no claim has been made. During this initial period, the provider must refund the full purchase price unless the holder returns the contract 10 or more days after purchase. This distinction matters when you draft the offer: the first 10 days carry a full refund obligation, while returns made 10 or more days after purchase allow a capped fee of $25.
If the contract holder returns the agreement after the 30-day mark, the same source specifies a different calculation. The provider shall refund the purchase price in proportion to either elapsed time or mileage computed from the purchase date and the mileage on that date. From this amount, the provider deducts a cancellation fee not exceeding $25. Note that this later-return rule applies only if no claim has been made under the contract. When pricing your service line, record both the 30-day full-refund boundary and the method for later returns so your invoice logic matches the statute’s structure. For how proration inputs work in billing, see proration inputs for billing .
A separate timing rule governs how quickly you must pay out once a valid return occurs. According to Washington State Legislature , a 10 percent penalty shall be added to any refund that is not paid within 30 days of the contract’s return to the provider. This penalty attaches to the refund payment itself, not the customer’s return deadline. If your accounting system processes refunds manually, set an internal alert for day 29 after arrival of the returned contract to avoid triggering this additional cost. The penalty is a fixed percentage of the refund amount, so the dollar impact scales with the contract price.
Finally, the statute mandates specific content on the written contract itself. The service contract must state the purchase price of the service contract and the terms under which it is sold. This requirement ensures the customer sees the exact figure before agreeing to the coverage. When you build your digital quote or paper form, include a dedicated line item for the purchase price and a clear statement of sales terms. These four elements—the 30-day return window, the $25 fee limit, the 10% late penalty, and the required price line—are the ones covered here. For the written terms, see written repair contract lines .
| Contract Event | Statutory Limit | Publisher |
|---|---|---|
| Initial return window | 30 days from purchase | Washington State Legislature |
| Cancellation fee cap (returns 10 or more days after purchase) | Not exceeding $25 | Washington State Legislature |
| Late refund penalty | 10 percent added | Washington State Legislature |
| Required contract text | Purchase price and terms | Washington State Legislature |
Minnesota's provider fee and capital figures
The Minnesota Revisor of Statutes sets specific financial thresholds for insurers or risk retention groups issuing the insurance required by Sec. 59B.03 MN Statutes. These figures define the provider's standing, not the price a customer pays for a service contract. When you build your pricing sheet, keep these regulatory costs separate from the line item shown to the purchaser.
| Financial Requirement | Amount or Ratio | Publisher |
|---|---|---|
| Annual provider fee | $750 | Minnesota Revisor of Statutes |
| Standard surplus and paid-in capital floor | $15,000,000 | Minnesota Revisor of Statutes |
| Authorized lower capital with premium ratio limit | $10,000,000 minimum; 3-to-1 ratio | Minnesota Revisor of Statutes |
Each provider shall pay to the commissioner a fee in the amount of $750 annually, according to the Minnesota Revisor of Statutes . This annual payment is a fixed cost for the entity providing the coverage under this section.
For standard authorization, the insurer or risk retention group must maintain surplus as to policyholders and paid-in capital of at least $15,000,000 at the time the policy is filed with the commissioner, and continuously thereafter. The same source requires these entities to annually file audited financial statements with the commissioner. This $15,000,000 figure acts as a baseline stability measure for the provider rather than a cap on premiums or a direct component of the service contract price you quote.
A lower threshold exists if the commissioner authorizes it. An insurer or risk retention group may operate with surplus as to policyholders and paid-in capital of less than $15,000,000 but at least equal to $10,000,000. To qualify for this exception, the company must demonstrate to the satisfaction of the commissioner that it maintains a ratio of direct written premiums, wherever written, to surplus as to policyholders and paid-in capital of not greater than 3-to-1. This ratio check ensures the provider’s exposure matches its capital base under the specific conditions allowed by the statute.
Write the $750 annual fee and the applicable capital floor into your internal compliance notes, not onto the customer-facing offer. If you are comparing providers for a multi-state portfolio, verify which capital tier each one meets before finalizing your rate structure.
Ohio's sixty-day payment request
The Ohio Legislature describes a specific scenario for motor vehicle ancillary product protection contracts. If a provider fails to perform or make payment due under the contract terms, the clock starts when the contract holder requests that performance or payment. The legislature sets a sixty-day limit for this initial request process.
If the provider does not act within those sixty days, the contract holder may then request performance or payment directly from the provider’s reimbursement insurance policy insurer. This step includes any obligation in the contract where the provider must refund the contract holder upon cancellation. The text specifically names the "reimbursement insurance policy insurer" as the next point of contact after the provider's failure to respond.
This rule applies to the motor vehicle ancillary product protection contract described in the statute text. It is not a general customer refund window for service contracts or home warranties. Do not use the sixty-day figure as a cancellation deadline on your offer sheet. Instead, treat it as a procedural step for resolving non-performance claims on this specific type of vehicle-related contract.
When pricing your own service contract, keep this Ohio line separate from your standard refund policies. The statute addresses what happens if a provider ignores a request for performance or payment, not how many days a customer has to cancel a new purchase. Your offer should list the cancellation window and refund percent from the statute that actually covers your specific contract type, not this payment-request timeline.
Filled reference table of contract lines by publisher
The table below lists the cancellation and refund lines for Florida and Washington.
| Publisher | Cancellation/Return Window | Refund/Fee Detail |
|---|---|---|
| Florida Senate | 10 days after purchase | 100 percent of gross premium paid, less any claims paid on the agreement |
| Washington State Legislature | 30 days of purchase if no claim has been made | Full purchase price unless returned 10 or more days after purchase, then a cancellation fee not exceeding $25; a 10 percent penalty added to any refund not paid within 30 days of return |
Next step today: add the Florida 10-day cancellation line and the Washington 30-day return line to your offer form before you save any price.
Related guides: Field service settings to verify: 8 job checks · Public works compliance: 8 contract rules to verify .
Service contract refund FAQ
How many days does Florida give a home-warranty purchaser to cancel, and what refund percent does that page state?
That same source specifies the refund must be 100 percent of the gross premium paid, less any claims paid on the agreement. These rules apply specifically to home warranty agreements under Chapter 634 Section 312 of the 2025 Florida Statutes.
How many days does Washington give to return a service contract, and what penalty does it add to a late refund?
If the provider fails to pay the refund within 30 days of the contract's return, a 10 percent penalty is added to the amount due. These rules are found in RCW 48.110.075 regarding service contract requirements.
What purchase-price line does Washington require on the contract?
The Washington State Legislature mandates that the service contract states the purchase price of the service contract and the terms under which the service contract is sold. This requirement ensures the buyer sees the cost and sales conditions directly on the document before signing. You should verify the exact wording for the required purchase price statement directly from the full text of RCW 48.110.075.
What annual fee and capital figures does Minnesota state for a service-contract provider?
The Minnesota Revisor of Statutes notes that each provider shall pay to the commissioner a fee in the amount of $750 annually. For insurers or risk retention groups, the statute requires maintaining surplus as to policyholders and paid-in capital of at least $15,000,000 at the time the policy is filed. Alternatively, the commissioner may authorize entities with capital between $10,000,000 and $15,000,000 if they demonstrate a ratio of direct written premiums to surplus not greater than 3-to-1.
What sixty-day step does Ohio describe?
The Ohio Legislature describes a scenario where a provider fails to perform or make payment due within sixty days after the contract holder requests performance or payment. In this case, the contract holder may request performance or payment directly from the provider's reimbursement insurance policy insurer. This provision includes any obligation in the contract by which the provider must refund the contract holder upon cancellation, as outlined in Section 3905.426 of the Ohio Revised Code.