Can oil separator cause catastrophic engine failure?

I have not slept in 2 days after hearing from the insurance company owning my "comprehensive" maintenance contract, that my beloved 996 C2 engine is blown and not covered. They said that since the oil separator is not an internal lubricated part, any subsequent damage is not covered. Without getting into which insurance company and which indie garage, I could use some sage advice from other Rennlist members. It seems the insurance company without my knowledge sent a forensic engineer to the garage and then the mechanic signed a statement that stated that the oil separator had oil in it. Their story is that negative pressure caused the RMS to suck into the crankcase, and that the spring retainer was pulled into the engine and over the course of 20 seconds from a cold start distribute pieces of itself in the oil pump, crank, cylinder walls etc. The car had 61K miles in it, and had its 60K service about 1.5 K mile service ago at this same shop with a clean bill of health. Prior to this final blow I had noticed the oil level gauge show lower levels unusually soon after the oil change (about 500 miles after the 60 K service), it was not smoking so twice I added about 1/4 quart over 1000 miles, and was keeping a close watch on the oil level. Again no smoke, unusual noises, or even a spot of oil on my garage floor. The torn down engine showed normal cylinder wear for this mileage, no stains of a leaking RMS, but the valves do have some crusting and incomplete sealing on 1 cylinder, and the oil pump does have damage (wear plus damage from metal pieces) So my questions are these. Can an oil separator completely fail in isolation? Is this scenario probable or could something else have caused the oil separator to have oil in it, and the RMS retaining ring to come into the engine with no warning? Lastly, has anyone had success fighting a maintenance contract under these circumstances or am I toast?

The external AOS air oil seperator is supposed to have some oil in it, thus the name. Insurance companys employ people to save them money by denying claims & sounds like you have met one. You should call flat6innovations.com during the week & talk to them.

Don't give in without a fight.

Total BS by the insurance company.

You need a competent and tough SOB atttorney right now. I also agree that talking to Jake over at Flat 6 is a great idea. It's common that their first course of action is to deny your claim. Your response should be a demand letter for all relevant correspondence, reports, and files relating to your motor from a respected law firm. That will get their attention. A formal claim for damages with the threat of litigation should closely follow. Bleep those ******....

Excellence Mag did a compete article last year on the Oil Sep unit (AKA PVC Valve)... how it works ... how it fails .. and symptoms. I do not recall anything in that article that would lead one to see the kind of failure they are claiming. I assume Jake is the best source for conformation either way. PS sure would like to know who the Indy is.. as I am in your area..?

The vacuum required to pull the crankshaft main oil seal (plus its retaining spring) into the engine would be huge. This (apparent) vacuum would suck every bit of oil out of the engine first, long before the oil seal let go.... This kind of misinformation is paramount to fraud !!

I just won a battle with the warranty company on my '99. My $2800 claim submitted by North Scottsdale Porsche was denied after the insurance company sent an inspector/adjustor to look at the car. Do what I did, file a complaint with The Secretary of State in the state the state the insurance company is located. File a complaint with the BBB in that same state and file lawsuite yourself without an attorney in your county's civil court for damages in the amount of the pending job. You can do both the of the complaints from your computer, it's easy. Go to your states civil court website and download the forms, complete them accompanied by your supporting evidence. File in person at the courthouse and serve copies on the insurance company by overnight certified mail. If you can contact your local TV station like we have here in Phoenix they do stories about this kind of stuff, here it's 3 on your side. Create a big mess for them to deal with, attack them every way you can. I am willing to bet that they will call you and pay your claim. They paid mine just to shut me up and get me off their back.

There is no way enough vacuum could exist inside the crankcase to pull the seal into the engine - the seal would simply allow air past the shaft before moving the seal inside the bore.