Choice Home warranty Refused to pay claim NOT denied in their own contract, Internet

I had a non-functioning Air Conditioner. A serviceman was dispatched and recharged the system with about 8 lbs of Freon. When CHW was contacted they said they would not pay for that amount of freon, (though my contract does not stipulate any maximum amount) and insisted there was a leak and that it would have to be researched. I paid the serviceman an addition $98 to investigate if there was a leak (not paid for by CHW). He said there was a small leak in the coils which is not uncommon on a 16 year old unit and that it might hold the freon for a couple of week or a couple of months, he wasn't sure.

He notice a little rust on the condenser. Rust forms when the system leaks and allows liquid to condense on the coils. CHW denied paing the for the freon based on the report that there was rust, according to them that it was not maintained properly. In addition they said the filters weren't changed according to the manufacturers recommendations, (3 filters cost $100 and we usually change them every 6 month, these were almost a year old ) and used that as well to deny the claim. I spoke with a supervisor who was very nice and he offered to send me a check for $200 for my trouble. I accepted with no stipulations.

Later I decided i didn't like the way they tried to get out of any and all claims in the past and i called and tried to cancelled my policy. I was told that since I received a check for $200 I could not cancel my contract because I had a year contract. i am in the second year with this company. I had a contract for the first year but never signed anything for a second year and thus was on a month to month contract. I also told the arrogant agent that there were never any stipulations put on the $200 that was sent to me. I also challenged him to show me any paperwork or phone recording stating I sign another year contract. None was provided. He threatened to send it to a collection agency at which point i told him to go ahead. I have 2 other rent homes with CHW.