I was told the same thing about a $50 credit but I actually got it applied while I was on the phone.
I contacted Verizon around August 1, 2012 and told them that I was unhappy when my phone broke and I had to go thru the insurance plan and pay a $99 deductable.
You should have known that there was a deductible on the insurance BEFORE you got the insurance. ALL insuiance works that way. Health insurance, car insurance.