"My friend and I booked a trip to china for 10/12/10, the trip was great for me but my friend had to cancel because of illness. He purchased the trip insurance through GCT and it has been two months and he still hasn't received a refund."
I'm a bit confused about your post. Oct 12 is not two months ago. Did your friend cancel in September? Did he pay for the trip insurance when he registered? If he paid more than 14 days after registering he would not get the pre-existing waiver. It seems odd that if he was covered the insurance company would request his medical records.
A couple of years ago I was injured on a trip and missed a pre-paid optional tour that included a flight. I sent in the form when I got home and was reimbursed, but it did take several weeks, so hopefully, your friend's claim will be paid soon.
Trip Mate is the insurance company, not Grand Circle. Trip Mate is a large company and may have a backlog of claims.