Ehhh, I dunno how clicking your insurance gump and targetting another player's paper doll cancels out their insurance. If you could do that, why wouldn't you just do that right in the beginning of battle? I dont understand how being redlined has anything to do with it, cause you're still alive regardless. I'm not trying to say you're lying, but it sounds like a rumor more than something that can actually be done.

edit: most of the reason I say this is cause if it were that easy, people would be doing it constantly, but as it is, only .1% of the population gets hit by the insurance bug. I dunno, just seems unrealistic

oh and one more thing, this bug affects blessed items too sometimes, so I honestly think it's more of just a random occurance bug than anything that can be manipulated, cause doing something like this shouln't affect a blessed item.