I received a Chase mailer today which included the following disclaimer:

$0 Liability Fraud Coverage - applies only if: you exercise reasonable care against the loss or theft of your card, your account is open, in good standing, and not overdrawn; and you have not reported two or more incidents of unauthorized use in the preceding 12 months. You must notify us of the unauthorized transaction within 60 days of the date of the statement reflecting the transaction was mailed or made available to you. This coverage does not apply to PIN-based transactions at a WaMu branch, or to certain non-personal cards and accounts. See Our Account Disclosures and Regulations booklet for further details.

Hows that for giving themselves enough wiggle room to drive a bus through. Why are they specifically excluding WaMu branches from fraud protection? Are they considered unsafe?

They go further to describe the offer this came on as "WaMu Free Checking." Is this a screw up or are they for some reason still actually calling it that even though the've purged the WaMu name from California already?

Be aware that under the law, you are liable for much more fraud with a debit card than you are with a credit card. If you don't report your card compromised before it is used (how would you know if your card was skimmed) you are liable for up to $500. If you don't report it within 60 days of the loss, your liability is unlimited.