Do you have some kind of special dispensation for this in the NG? Do you have a specific ref?
Utilizing LNAV/VNAV with a LOC loaded, you have no raw LOC diamond on the PFD, no LOC DME on the PFD (the distances on the ND are from coded waypoint to waypoint, not equateable to LOC DME). I don't believe you'll get a LOC fail flag either under these circumstances on the PFD, should that occur, even if you have LOC tuned.
From my Flight Handbook, I'm only required to use APP on ILS or LDA w/ G/S. We still are required to monitor raw data. APP as mentioned above or LNAV/VNAV. LOC G/S OTS requires V/S, not VNAV. I'm looking through the Ops Specs for it. Ops Specs C300 give us LNAV for VOR, ADF, etc., but I haven't found the specific Spec for LOC, etc.
How do you accomplish a B/C approach? Without IAN, you'd need to use HDG SEL.
Sorry for the drift.