I think water leaked through my iPhone's life proof case?

I just bought a new life proof case from best buy. I took it home to use it in the pool. I tested the case first to make sure no water got in without the phone, none did. Then I put in my phone. I used it in the pool for about 10 minutes. I realized there was some water inside it (just on the screen) so I quickly took it off and wiped the screen down. I let it sit. And took only the case in the pool. It seemed to have no leaks in it. So I put my phone back in. I used it for about 15 minutes, then I tried playing music under water it worked. When I went inside the phone was making a staticky noise. I turned on the music and it worked fine. I then turned off the phone and the noise stopped. Now it is sitting in a bag of rice.

Final questions:
Is my phone broken?
If not how long does it have to sit in the rice?
If it is, does life proof cover my phone breaking in the pool?

Added (1). I have an iPhone 4S.
And I know the life proof does something about a one year warranty. Does that only get you another case? Or a new phone as well?

Life proof only does so for a year I believe. I'd call them perhaps?