The article quotes an "expert" stating "he knows no airline" which doesn't insure all risks at "full replacement value".
But we can easily find actual airline insurance terms from SEC filings by doing a simple
Google search.
You'll see insurance agreements related to numerous past and current airlines, including Delta, United, Skywest, American Airlines, Aloha, etc.
All of them use "agreed value" as I described above, and not "full replacement value".
The only exception I know is if an airline self-insures. Otherwise "agreed value" is standard practice world-wide.