PPRuNe Forums - P2 in N-reg Aircraft

I have to be careful 'cos I'm not very good at the regulations.

However, I understand that under FAA rules, an aircraft certificated for two crew requires one type rated captain and a copilot who does not necessarily need a type rating. The copilot needs to be qualified - perhaps multi/IR in a Citation, for example. This has been a way in which non-type rated self-improvers have gained turbine time.

I have been told that while the FAA position has not changed, insurance companies are now indicating that outside the US, in countries which require two type rated pilots in aircraft on their own registry, they expect to see two type rated pilots, even in N-reg aircraft. Indeed I was told a story of an N-reg business jet which recently went off the runway. According to the rumour, the insurers declined to pay out because there was only one type rated pilot on board. The other pilot was non-type rated.

Can anybody clarify this situation for me? Have I understood the situation correctly?

Many thanks