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Faulty tires

I have four Pirelli Performance Snow mounted on my '93 S4. I only use them 
in the winter, and so they have plenty of tread--maybe 15k miles total. 
Recently I noticed a bulge in the sidewall of one of them. No expert, I am 
still assuming that the tire has to be replaced.

Should I expect some sort of rebate from  Pirelli? I got the snows with the 
car when I bought it new, along with four summer tires. I don't remember 
getting a written guarantee.

Also, how dangerous is this bulge (about an inch in heigh and maybe three 
inces in diameter)? It will take a while to get a new tire. Should I be 
increasing my life insurance?

I am in inveterate lurker on this list. I have been greatly educated by many 
of the extremely well-informed postings, and I have been impressed by the 
lack of flaming. Let's continue to try to settle quarrels amicably and quickly.
Peter D. Grudin
Assistant Dean &
Director of the Writing Workshop
Williams College
Williamstown, MA 01267