I work for for an extended warranty company.
rule 1: make sure you know what is covered and not covered in your contract!
rule 2: make sure you failure is covered. "Example: rust is not covered" VERY IMPORTANT!
rule 3: never argue with an adjuster. You won't win and the threats of a lawyer don't work! Go to the insurance commissioner of your State. THAT WORKS EVERY TIME AND DOESN'T COST YOU MONEY
NOTE: Many extended warranty companies send used parts such as engines and transmissions
Read as the "PARTS OF LIKE KIND and QUALITY" clause. It is Legal and your only option is to upgrade by paying the difference in the cost of the parts.
The most problem you will have is and independent inspector may come out to have the repairer show him the failures. If the r/f does not demonstrate the failure properly you get no coverage!
If you need help please email me!