Should I have been charged a $50 deductible for using TEP?

[Ph33zy]

My TP recently developed the rainbow circle underneath the screen. I went to a repair center and they ordered me a new TP and I returned my defective one.

The TP that I returned had 0 scratches on the body and screen (always used a screen protector). I was under the impression that a $50 charge was only charged to lost or water damaged TP.

This is the first time I've returned a phone under TEP. Is this how TEP works? I did not go thru Asurion btw.