Choice Home Warranty Florida Air Conditioning system failed, they denied to reimburse the claim Edison New Jersey

On 6/27/2018 my HVAC system failed and I filed a claim with Choice Home Warranty, of Edison, NJ, whom I have active whole home warranty coverage under.  Per their policies, Home Choice Warranty attempted to locate a local HVAC service company to diagnose/correct the issue but after 20 hours they were unable to. The following day Home Choice Warranty then offered me their "reimbursement option" detailed here: "In order to avoid further delay, we offer a reimbursement option. Upon selecting the reimbursement option CHW will stop working on finding you an appointment and you will be required to find your own technician to service your claim. Upon diagnosis, the technician must contact our Authorizations department at 888-373-8042 to submit the diagnosis. The cost of all covered claims are reimbursed to you within 30 days. "

I then contacted my regular HVAC company that has performed preventive maintenance on my system several times in the past. The technician examined the system and determined (due to its age of over 12 years) the entire system must be replaced. The contractor submitted a proposal to Home Choice Warranty with their recommendation but Home Choice Warranty has denied the claim. (Please be advised my policy explicitly covers HVAC systems.)