Is this really legal?

I recently went into a large retail chain to make an insurance claim on a phone that I had purchased there only one month before. I was told the warranty program was you send it off they fix it and send your phone back to you and now when I went in today the program had changed. Now it’s they send you a completely refurbished model. I had my original phone for barely a month and now I get someone’s old, broken phone with refurbished parts. Is that Legal? Can they change policies without informing the policy holders? When you sign up for their service, they get your name, number, and email. it wouldn’t be that damn hard to atleast send an email letting people know. When I called to complain, the attendant helping me said she couldn’t find anything on it either, but found it on the employee page. Can they hide something like this when I am still paying monthly for a service I thought I was getting and now am getting something completely different?