I made 100% sure I purchased the official Toyota extended warranty and not a third party insurer agreement. I received the full booklet and a call from Toyota a week after purchase.
Still, the official Toyota agreement is actually sold by Toyota's insurance bank, not Toyota corporate. As posted above, insurance "administrator" has authority to authorize or not authorize repairs.
The SM told me that because the rack and shaft together would cost over a specific amount of money, the insurance adjuster had to be called. If it was $10.00 less, then the adjuster could be left out of it.
How much leverage does Toyota corporate have over the Toyota extended insurance company?
For those interested, here is a scan of the terms and agreements of the warranty (1.4MB): http://db.tt/cIKn79nw