Warranty

I purchased a Car Chex titanium warranty in October 2014 for a 2005 bmw 645ci that had 79k  miles.  I only have 83k miles now, so I don't drive the car very much.  I bought the car used in July 2009 with existing manufacturer warranty that expired in October 2009.  I bought an extended warranty from  the BMW dealer at that time which expired in October 2014.  When it expired, I decided to go with Car Chex.  I recently took my car in for a scheduled oil change and was told that the valve stem and seals were bad and causing oil to leak into the catalytic converter.  If not fixed, the catalytic converter would go bad.  Car Chex has denied my claim on the basis that my issue is an oil consumption issue only.  However, the Repair Shop is saying that if that were true, then just keeping oil in the car would resolve the problem.  However, the bad valve stem and seal is causing damage to the catalytic converter.  The repair cost is $3,500.