USPS Insurance Claim Beware!

I shipped a package through the USPS which when we shipped it they only asked what the value was ($2300) and not what was in it. We were never handed a list of exclusions. We shipped it as "Insured Mail" which offered a VF number (only they can look it up) number on the package. After weeks had passed we discovered that our package never arrived at it's designation of PCGS (a coin grading service in California).
We were told we had to wait 21 days to submit an insurance claim.

We waited the 21 days and then were told that the USPS had 30 days to research the issue. During this time period, we repeatedly called to verify they had all the documentation they needed for the claim which they asserted that they did. At one point, we were told that if they haven't found the package within the 30 days that a check would be sent to us.

After the 30 days passed, we were told that they did need some more documentation. They said that as soon as that was sent they should have a check sent to us within 2 days. We gathered the information they needed over the next couple of days and faxed it to them. We called to verify that they received it 2x times which both times they assured us someone would call us when they knew for sure. Nobody called but we noticed on our USPS account that the status for the claim was marked "Approved". Great! We'll, I forgot this was the USPS. We called them to ask when the check was to be sent. When we called them they stated they would be sending a check for only $17 and some change because they have some type of "indemnity clause" on insured coin packages that aren't sent Registered Mail.

I asked to talk to a person in the Billing Department and she said they didn't have any supervisors (part of their rigged operation which they offer in addition to constant stall tactics and one-way phone calling). She gave me a phone number to call and that I could file an appeal (the main number). I called the number and spoke to a supervisor to which she somewhat reiterated the "indemnity clause" exemption. She said she would make a note on the claim that we were never informed of the exclusions and the requirement of needing to ship as "Registered Mail" to avoid the exemption.

So many questions:
1. Is it really insurance, if they don't offer a list of their exclusions?
2. Why did they question the value of the package but not question the contents (evidently their own employees don't know that there are exclusions)?
3. What did the $27 and change really insure? The box? Why would someone insurance a box for $27 to only receive back up to $17 due to an indemnity clause?
4. Why do they put the "insured value" on the outside of the box (other than to tell thieves what their reward is if they are successful in stealing the package)?
5. Why did they state they had all the documentation when they needed more?
6. Why did they need more documentation when they already knew it was for a package with coins and yet "coins" are one of their exclusions?
7. How do they "lose" a package when they offer tracking on a package?
8. We recently read that, supposedly, as high as 1 out of 7 packages shipped to PCGS is stolen. If we knew that, how does the USPS not know that (unless their employee's are part of a
theft ring)?

10. When this type of thing happens, do you call the Attorney General, my Congressman, the BBB? Congress can barely keep the USPS afloat as it is. I'm guessing they need my money to keep
them around for another day or two.

I'm trying to "appeal" this case with the USPS and my local postmaster is also trying to help. I'm trying to resolve this issue without too much fanfare but this seems huge. As a business owner for over 16 years it seems like it's hard for business to pull this type of thing yet this is being done by our own government. Somehow I think a business would be quickly sued and out of business for this type of business practice.

I'm hoping that this can help other people who might not know that their "insurance" may not cover what they ship at the USPS unlike a homeowner's and auto insurance policies require a signature to accept their exclusions.