I really hate to say this, but travel insurance in general is a very iffy proposition even when purchased from most well known (not saying "trustworthy") companies - it's hard to get them to pay up under the best of circumstances. What can one be thinking buying travel insurance from a company with a reliability and honesty track record of a town drunk?

I mean, it's Avianca/Lifemiles. You are taking chances just buying their miles (and using them asap on a ticket to depart in the next few days).