I fail to see what the hubbub is about... the main thing I see in this whole argument is rules for rule's sake...
Looks like if you're at MDRA you're fine...
As someone previously mentioned, what's the worst that could happen?? A cato?? Those happen far too often anyway, either from improperly assembled motors or faulty equipment (worn out closures/threads/casings). I guess there is the remote possibility that you could lawn dart on somebody's new Mercedes or something and be out of pocket, but I take it you're NOT going to be flying "cutting edge" designs with unproven stability or having a high degree of complexity, like airstarts, composite staging, shear pins, or other such things that would make the flight 'complicated' and thus less reliable and more prone to such a malfunction...
Still, stuff happens and I can see where you'd feel better having the insurance behind you...
I find it somewhat amusing that HPR basically started as a "maverick" and technically illegal activity outside the safety code and the rocketry organization back in the 60's, 70's, and 80's, until it was FINALLY codified and "brought in from the cold" and basically "made legal" in the late 80's... how many flights took place prior to that outside the safety code boundaries and technically "illegal"??
Don't get me wrong, I'm all for the safety codes, but I'm for more about MAKING SENSE than rules for rules sake... I find it even more amusing (rather troubling, actually) that folks who'll choke on you modding your motor casing to accept a transducer and would throw a shoe at you for bringing it to the RSO table, will smile and pat some shmuck on the head wanting to fly some off-the-wall unproven stuff with inadequate safety precautions, low-reliability design, excessive complexity, or just plain ill-conceived ideas with little likelihood of success and virtually NO benefit other than the "hey, cool" factor for the risk taken, and send them out to the pad... (say, like, oh, somebody having the hairbrained idea that it's a good idea to use shear pins on a HPR flight on a field surrounded by homes and businesses when the waiver is only to 2500 feet anyway... so shear pins are TOTALLY UNNECESSARY and add unneeded complexity to the flight, lowering reliability substantially, and with insufficient testing... the rocket slid right through the check-in and flew, didn't have enough BP to shear the pins, and streamlined in to someone's backyard offsite, and demolished their back porch awning...
Yep, I feel safer already! Follow the letter of the law, but not its intent... Don't even think about looking at the risk/reward quotient... Geesh...
OH well, we return you to your regularly scheduled program...
That's just my take on it anyway...
Later! OL JR