Its interesting in that to to some extent none of this really matters to the average private pilot (over even small commerical operator) at the moment. It is quite clear that there is some much confusion you doubt any authority would bring a prosecution, and, if they did, you would doubt how successful they would be.
The real rub I guess for many is that (God forbid) if anything were to go wrong its whether or not the insurance company would have grounds for refusing the claim (and there in are the real dire consquences for most). I wonder if an an insurance company if asked the question (lets say in the circumstances peterh337 outlines) what their answer would be. I know their answer in one specific case but ultimately it is a matter between each owner and their insurance company.Were I in the situation I know I would want to ask the question and make certain I receive a written answer.