[halcyoncmdr]

As long as you have the correct insurance plan on your phone, replacing the phone or ordering a replacement is not uncommon at all. Most of the time it will be a replacement refurb, however, if they don't have one in store, and the warehouse doesn't either (unlikely for just about all phones) then you will get a replacement new phone.

Or if you're withing your first 30 days, it will be a new phone most likely, but it will count as your one and only exchange opportunity.

I highly recommend getting the insurance on your phone, especially if it is a smartphone. If for any reason there is water damage, or if it gets stolen or lost, would you rather pay a $50 deductible? Or if you aren't eligible for upgrades, pay a lot more pretty much anywhere else.

While the insurance may seem like a rip when you think of it as $84 a year, look at it this way:
The price of a new Mogul retail is $549.
Insurance for 22 months until your next rebateeligibility, including the $50 deductible, is $204.
Which would you rather pay if your phone gets stolen or water damaged and you have to buy a new one?