If full dues club member Joe flys with out his name in his plane and has an accident, yes AMA insurance may be denied. If PPP club member Bill flys a 8 lb glow and his coverage is only for 2lb electrics and he has an accident, then surely his coverage is also going to be denied.
You sure about that? Then how does a kid on an ATV that runs into your chain at the entrance to the field get coverage??? Where is that in the safety code or part of his AMA card, which he doesn't even have.
Also you are no more negligent then when John $58 member flies outside the safety code then you are as John who is a PPP member flies outside the safety code. You knew both were members no matter what kind of card they have.
It's ok your club will not allow the PPP, that's one of reasons that PPP came into existence. The AMA made this program very simple to understand. Like I said, some get, others refuse too get it. But only time will tell if you one day HAVE too add the PPP's to your club bylaws. Right now it's easy to say ... no I won't. In the future it may not be that easy.