Failure to fix the screen and coming with Excuses

My phone contract includes screen insurance according to the deal i took and now when my phone is supposed to be fixed i'm being told that the phone needs to be exchanged.When i booked my phone it was in a working condition with a cracked screen,\NOT DEAD"as i was told by one of the agents when i called yesterday.Right now it feels like you are making excuses or creating more problems(like damaging the phones) so that customers pay more money for exchange instead of you paying for insurance as promised.Why do you say the deal includes screen insurance if you know you won't be able to fix the screen?Is it because you know that you won't really have to pay for fixing it?You will just tell the customer that there were more damages on the phone (which is not true) knowing exactly that you don't cover that?That way you've got nothing to loose.I really don't understand why do i have to pay for phone replacement for a phone that has a screen crack and insured on top of that.This is so not acceptable"