I experienced this same problem with Asurion today. I have a fully-functional iphone XR that I bought new from Verizon less than 6 months ago. My screen cracked. I sent it off to Asurion and received an email stating that they are unable to fix my phone and to call them. I called and was told that my phone didn't pass diagnostic tests and therefore could not be fixed for the $29 payment. When I pressed for which diagnostic test it failed, the phone service person could not give me specifics. I was then advised that my only option was to pay a full $199 for a replacement phone. This felt WRONG and I told them so. I had already called local cell phone repair shops and was told the charge for replacing the glass on the XR would be $200 so I felt stuck when Asurion pulled this. Now, after reading this forum, I expect they aren't sending me a new phone at all but rather a refurbished one and my original phone which is PERFECT will be recycled by them to make more money. This needs to be investigated and STOPPED.