I should say, when I went to the Apple store I was honest with the guy, I said:

"I was getting on my boat, dropped the phone in the water, and it sat there for like a minute. It still kind of works, but its sketchy. I want to know what my options are; I don't want to 'upgrade' right now because I plan to get the iPhone 5 on the release date, like I did with this phone"

He came back a few minutes later and said "This is a huge exception, but my manager said we can replace it for you."

I'm curious if they look up and see that I've had at least 6 iPhones between the 2 numbers on my plan and that I always buy when the new one comes out. Or maybe they looked at my iTunes purchase history, LOL!