Once a PPL is also an FI they will be qualified to determine the outcome of a check flight. Solely as a PPL they do not have the right or qualifications to determine if someone is safe or not. I would imagine an insurance company and the legal bods might find it interesting in the aftermath of an accident.
Not that I necessarily agree with PPL/FI's anyway....(even if they are all members of beagle's boys brigade!)
P1/PUT, who cares really as long as they have bona fide hours to revalidate without counting checkouts as P1. Personally I always tell people to log PUT, but what they actually do I often don't see.