insurance won't honor theft coverage

Hello,
in may 07 I bought a set of 2 cellular phones online from a company that charged me and activation fee of $62.00 for each phone, plus a $49.99 fee (again for each phone) for theft coverage. When received the first bill from Cingular, I noticed that I was charged a new activation fee, and when I called Cingular asking explanations for the double charge, they said that the carrier only can charge an activation fee, not the phone seller. I was very upset, but I didn't do anything, but now something else happened.
I gave my son one of the two phones, and it was stolen from his jacket while he was sleeping at a friend's house, after a party.
He filed a police report, and then we contacted the insurance company (NCOA - National Cellular Owners Association) asking for a refund/replacement.
After about 2 weeks of going back and forth emailing them (that's the only way to get in touch with them), they refused to pay/replace the phone on the basis that my son did not have good care of it, and yesterday I received a SINGLE $49.99 refund check, saying my membership has been canceled.
There's anything I can do to make these people pay?? Can I still contact the credit card company and dispute the charges at this point? There's any consumer protection agency I could get in touch with? What else can I do?

Thanks in advance for any help,
Ales

Based on what you say here, you could file suit against them (or at least threaten to do so) in small claims court or in regular court; filing in small claims court is easier and requires no attorney...you could try to collect all of the costs and damages that you suffered due to their behavior... You may also report them to your state attorney general's office.