I have an iPhone 4S on which I bought the Apple Care policy. The phone was broken and I was told that Apple would do nothing as it was "beyond economical repair". Does anybody know where in the Apple Care agreement the topic of beyond economical repair?

I recently brought in a broken iPhone 4S and was told the damage was too great and therefore that is was BER and Apple would not cover the phone. I have never dealt with this issue before and was curious as to where in the terms and conditons Apple reserves the right to not cover if the think that the phone is beyond economical repair. When I asked clerk I was told that everybody knew that BER applied and "you would not expect an insurance cover to pay for a car if it was totalled." I told the gentleman in that case the BER only applies as to whether I received money for car or insurance company repaired the vehicle. When I asked to see the terms that set this out nobody in the store (or the chat support agent later). Does anybody know where this term or terms is set forth. Also, has nobody ever questioned if it is fair to sell consumers coverage for accidental damage and not tell them that only small damage is covered and not major damage? I am a little suprised unless I am missing something really obvious. I have never had this issue with Asurion or with Best Buy coverage. Thanks