2010 BMW 335i water pump warranty ? claim refusal

[rmjones]

Needing some input to help me here.
BMW dealership is hearing from the after market warranty company that although they cover water pump replacement see warranty paragraph 2 of engine section. because there is an internal gasket that is leaking (vs. the pump being seized up) they will not cover it. I had the coolant symbol come on & had car towed in. BMW replaces the upper hose, lower hose & now, it looks like the leak is coming from the water pump.
IMO, the warranty person my technician talked to didn't know that the gasket is internal (?) OR they are just declining to cover the part as standard practice for a warranty claim.
Rationale: The last paragraph on the warranty section states the conditions where seals & gaskets are covered.
My conclusion is that it should be covered as noted in their own warranty contract.
Thoughts?