You're right Ira, and apparently in concert with the extant AMA position. From the AMA website:

"For non-AMA members wishing to experience a “hands-on” model flight, the Academy does allow this, on a onetime basis per person ONLY, (with the use of a Buddy Box system for RC). During this one-time flight, the club is protected through its liability coverage as long as the non-member’s supervised flying is in accordance with the AMA National Model Aircraft Safety Code(s). Under NO situation should the non-member’s equipment or aircraft be used. ONLY AMA members are insured during this flight per the terms of the liability policy. This coverage is never transferable to the non-AMA member during the permitted one-time trial flight." <emphasis mine>

Ergo the insurance company doesn't have a stake in the buddy box issue. Folks that have an issue with non-members getting instruction without having to ante up first are apparently mixing the Intro Pilot program provisions into the discussion. It is the IP program that provides the non-member with 60 days of instruction, with insurance, at no cost except for the 5 bucks paid by the instructor or his club for the privilege of giving up his own flying time to provide that instruction.

Abel