It means you probably had the insurance without the extended warewnty, so you have to go thru the asurion because Verizon will not honor a out of warranty exchange. $99 is the standard deductible that asurion charges for making a claim.
Ouch that is tough. How much is one used? If it is less then buy a used one. If you plan on selling it when you get the bionic at least it will be newer. You could also just get a regular phone for short money until the bionic comes out in a couple weeks.