What is phone insurance if there is no chip?

Accoding to the person over the phone it means it's not insured. 

Just recently broke my phone to where it was unaccisble so I had take the chip out to put in a old temporary phone for work. Since I could shelf out half of what it cost off the bat. So a month later I make the call to get it done and they say they won't do it without the chip?

I mean isn't it phone insurance not chip insurance? I've done this to a few older device in the past and usually the new phone came with a new chip and we sent the old device and that was that. So why can I read people losing there chip and still be able to do it.

Like I know I got it from Verizon it should have its serial number as well it's still the same chip.  To me it just doesn't make sense. 

Re: What is phone insurance if there is no chip?
Customer Service Rep

Thomas21, We know the importance of being able to file an insurance claim, when needed. We're truly sorry to learn that your phone is broken and that you've experienced this difficulty in receiving a resolution. Can you please share more details on what chip you're referring to or more about your situation? What was the terminology used by Asurion when your claim was not accepted or approved? We want to do all we can to help.  TanishaS_VZW

Re: What is phone insurance if there is no chip?

It's a SIM card.   It indicates your phone has active service right up until it was broken.   It's how Asurion prevents insurance fraud.  

A broken phone also has to be returned as part of the insurance replacement.   

You should ALWAYS file a claim BEFORE you move your sim into a temporary phone.  
If you have the broken phone, and it's can be powered up, put it back on your line until your claim is accepted.