Priceline Travel Insurance Scam , Internet

I am legally entitled to a refund of the ticket I purchased on American Airlines for $236 ($220 for the ticket and $16 for insurance) because of Regulation 261/2004 which states that when a flight is cancelled, passengers are entitled to a refund of the ticket as well as a return flight.  This e-ticket I purchased on Priceline was a one-way return flight from ICT to EWR on June 19.  I was unable to take this return flight because the flight from EWR to ICT on United  (June 18) was cancelled because United had a computer glitch that day.

Furthermore, I bought travel insurance for this flight.  When I contacted Priceline, they sicked me to Benefit Care, their insurance provider.  I was told that the insurance policy only includes death or sickness.  It seems to me that travel insurance is just one way for the airlines and their booking intermediaries to make money.  What is the point of Regulation 261/2004 if there is no recourse?  How many times are consumers robbed of their hard earned money when flights are cancelled?

I believe it is only fair that I get a refund.