UPDATE: From information gleaned thru reading the fine print, scrolling endlessly thru this forum, and long phone conversations with AON and Carnival I was able to discern what went wrong...AND I am very happy to report that the travel agency will be making up the difference for me 🙂
With CARNIVAL, when you must cancel a cruise, TAKE the refund offered. Claim the penalties from AON (claims processor). Your cabin mate(s) PAY the increased rate for change of occupancy right away. Then they claim the increased payment on the Carnival Vacation Protection. This also works for the increase in single supplement if your cruise buddy has to cancel.
I mistakenly and without support (travel agent) did not take the refund thinking it would come thru the "insurance." My friends sailed on my share. It isn't in Carnival's best interest to tell you to take the refund and follow these steps because it's all IN HOUSE! God forbid they give up the dime. But because I didn't take the refund, my friends couldn't say they PAID EXTRA, therefore they have nothing to claim. Carnival ate my share.
Of course, for all of this to work the cancellation must be based on one of eight reasons listed in the Program "fine print" which is found by clicking thru on the Carnival Vacation Protection Plan page on their website. It's a shame on CARNIVAL that it took three hours on the phone to find someone who could interpret and explain the product they sell the hell out of everyday. Not one single front-line customer service agent could explain the product fully.
Two things: This was a giant cluster you-know-what made worse by not having my wits about me (hello, pain meds). And secondly, there are kind and worthy travel agencies out there who step-up when inexperience and confusion short changes a customer.