AUL is trying to get out of a drive train claim I have. They have a million excuses to get out of claims. I have a GMC Terrain with a 3.0 V6 and the Head is found Porous. AUL's excuse is oh all GM engines used Castech and were manufactured that way. I researched and only the 5.3 V8's some had Castech heads. When suing this company search for their registered agent and serve that department. Check out this registered PDF file under their registered agent listing https://businesssearch.sos.ca.gov/Document/RetrievePDF

What Jeff is saying here does not make a lot of difference here. Dealers sell this insurance in the hopes that the insurance will help their customers to have their car issues solved without headaches. Insurance companies sell their policies with lots of fuzzy clauses to keep the right to ask whatever they want, confuse the users and then deny the claims that are too expensive. That is how they make money, just like Health Insurances, except that the latter are strongly regulations. 

Unless the problem is something that poses a direct risk of death or severe injury they are given the right to complicate everything to the point you just give up trying to get your claim covered, or to a point you don't find any service provider that wants to work with them.

Quick poll: how many people here bought a AUL or any other Service Contract extended warranty for a second time after purchasing their first policy and ACTUALLY USING it?

This is the kind of thing you buy to have peace of mind. Never used it? No problem, peace of mind successfully accomplished. Needed it? Headache alert. Try to Read the terms and make a CLEAR LIST of what is covered and what is not. You will see how unlogical it is - based on the contract they give you they can DENY anything, or push it until someone gets so sick of trying to get it covered and just sell the car or live with the problem until no longer viable.

Rip Off!

 You finance a car in 48 months, the insurance is just a few bucks a month so you decide to get it, 'cause WHAT IF...right?

So let's break it down the WHAT IFs a little further...

You buy a $7500 car and BUY a $2000 3 year/36kmile insurance and

• If you are lucky, your car won't have any problems and you just wasted $2k;
• If you are lucky, your car will have a simple problem and they will cover it. You just wasted the $2k minus the cost of the fix and deductible;

You buy a $7500 car and DO NOT BUY a $2000 3 year/36kmile insurance and

• If you are unlucky, your car has problems and you spend $2k to fix it. You will blame yourself for not having bought the insurance because you will be lead to belive they'd have covered it; But you are now break even with the case where you'd have bought the insurance;
• If you are unlucky, your car has problems and you spend $4k to fix it. Same as previous. You blame yourself.
• If you are lucky, you car never needs any big repairs and the insurance either covers it or you pay out of pocket. You just wasted the $2k minus the cost of the fix and as many deductibles as fixes required;

In my math I made a very, very bad decision when I bought a ($1900 3yr/36kmiles) AUL extended warranty for my ($7500) 2010 santa fe. I could've put the $2k on a savings account, or had it to a FSA account, or just bough a +$2k worth newer car, or a +$2k down payment on a brand new car because my credit score is good enough.

You failed to mention what year, make, model, or how many miles the vehicle had when you purchased it. You did point out that the car travelled approximately 1-month, but an unknown amount of miles since purchase. Your post mentioned that your mechanic reported to AUL that the internal engine components were found to be "sludged-up", creating a lack of lubrication condition to the internal engine parts. 

Lack of lubrication from any cause other than the failure of the oil pump is clearly listed on all Vehicle Service Contracts administered in America-including AUL. Out of curiosity, what amount of money dirrived from the commission/profit of sellilng you the car, as well as the dealership commission/profit from selling the AUL Service Contract did the used car dealer offer to you in assistance with this clearly non-covered condition? 

I find it interesting that you cry foul about the warranty administrator for denying the claim as per your contractural agreement with them, yet you mention nothing about the dealership that acquired the car, inspected it, allegedly reconditioned it, and sold it to you.