CNA National Warranty Corporation CNA Failed to Honor Warranty Scottsdale Arizona

On Wednesday December 16, 2009, my 2004 Mazda 3 suffered a catastrophic engine failure resulting in the dealer determining that whole engine must be replaced.  The dealer stated the oil filter house was cracked and oil had leaked from the engine causing the failure.  The dealer was unable to determine if the housing crack caused the engine failure or if the engine failure caused the filter housing crack.  CNA National Warranty was contacted and an inspector arrived at the dealership, The Surburban Collection, Troy, Michigan.  The inspector informed the dealer that the issue should be covered and forwarded photos and other materials to CNA's headquarters in Scottsdale, AZ for further review.  On December 23, 2009, CNA corporate contacted the dealer and asked them to put together a quote for the repairs and provided the dealer with information related to a used motor as a possible replacement to the damaged motor.  On December 28, 2009, CNA contacted the dealership and  informed them the claim had been denied stating that the oil filter housing was not covered under the warranty.  In a followup call to CNA, supervisor Bill Roberts stated that the oil filter housing was not covered, but he would review the damage again to determine if there was some way to cover the problem.  Robert's stated that the inspector is not an employee of CNA can cannot make a determination of repair only CNA corporate may do so.  CNA requested from the owner all service and oil change documentation which was promptly faxed to them for review.  All services on the vehicle had been maintained by the owner to the manufacturers specifications.  It was requested of CNA to provide a copy of the contract stating the oil filter housing was not covered, CNA stated that a brochure could be sent but it would be the owners responsibility to locate the contract at the original dealer.  On December 29, 2009, after repeated calls to CNA, Mr. Roberts stated he had reviewed the claim and had come to the same conclusion that the work would not be covered.  CNA National warranty created a contract which allowed for so many loopholes they would undoubtedly not cover most repairs.  The original extended warranty cost approximately $1299.00 and the low end cost to replace my engine is $5700.00.  I'm highly dissatisfied with CNA and they ability to live up to their warranty.  I have requested copies of all contracts in the hopes of pursuing alternative legal action.