what do you think the Investigators and Insurance Guru's might have to say in a post accident situation?
What nonsense.
Is this how you live your life? Every time you get in an aircraft you think what some hypothetical AAIB investigator will have to say about your actions, or what some insurance bod will say.
The insurance is there to cover the aircraft, if it is a flying school this will include solo students. That really is the end of it.
Who cares what the AAIB say anyway? They're there to look at the facts and make safety recommendations, the fact that the student previously held a licence would not be a proximate cause of any accident, so would really not be relevant to the investigation. It would simply be stated at the start of the report as fact, and I'm sure hardly make it in to the conclusion.