What Happens If My Iphone 4s Breaks?

They'll keep a stock of refurbished models to cover warranty claims for unrepairable phones; the last thing they want is to encourage fraudulent claims in order to get free upgrades.

At their option they might exchange a broken and unrepairable 4s for a basic refurbished 5 or 5c when they have no more 4s models in stock, but most policies include a clause allowing insurers to simply pay a fair settlement sum instead.

No. Unless it is insured you would get no phone at all and would have to buy a replacement at your own expense.

If you have insurance Assurion would send you a refurbished iPhone 4S

You'll get a refurbished 4S. Do you think they are stupid?

well i don't think so may be they will try to repair.