RE: quick question
Know your student and your equipment.
The AMA rules are only one consideration in deciding how many flights I will allow a beginner to have on my equipment. I don't allow over-concern for the insurance regulations to limit me in giving multiple flights to non AMA members, using my own equipment, including a plane specifically built and equipped for this purpose, so long as club, or flying site rules permit.
However, in doing so, I recognize the risk that after the first flight, I will be personally liable in the event that the "student" crashes the airplane. As long as I have my finger on the trainer switch, I am pretty confident that I will be able to seize control long before the student hits someone, or causes damage to the property of others with the plane.
I follow a few rules: I do all takeoffs and landings, I never let the "student" fly below three mistakes high, and I gauge my student.
If it is a person truly interested in learning to fly, I will use my plane for instruction, even until just before solo until they have completed their own airplane and demonstrate that they have joined the AMA, at which point, we switch to the student's plane for takeoff, landing, and post-solo instruction.
On the otherhand, if the "student" appears reckless, or is deliberately trying to crash my plane, buzz people, animals or property, or repeatedly fails to fly at a sufficient altitude, or distance from the flight line, I disconnect the cord, the lesson is over, and they do not get another. Someone else can teach them to fly.
The AMA is not going to sue you, ground your airplane, or take away your birthday if you allow a non AMA member to fly your airplane more than once. However, they can refuse to insure you if the non-AMA member kills someone with your airplane. So, consider that risk and then use your judgment.