Auctiva Bill B. - Yes, I am aware that it is a Marine policy and that the carrier itself is licensed in the state of Colorado. HOWEVER, call the Colorado Commissioner of insurance yourself if you wish, as I am only telling you what I was told. In the state of Colorado the agency is required to be licensed here.
As for folks that claim to self insure - I have been telling them that's illegal in most states for 7+ years now. I do have a clue as to what I am talking about hard not to learn something when you would in the industry for 20 some years.
"I think people are looking for reasons why our business model will not work... especially our competitors as they are getting pretty concerned with our success."
If that statement is referring to ME, I have to laugh. I am not a competitors of yours. I make my living selling online, ebay mostly. And yes, I think everyone knows that Tomas of SpareDollar stated back in 2004 that there is no way FREE Auctiva would last and he can't believe what you all have done and continue to do here for FREE. BUT that's a whole different topic!
I don't get how you are interpreting "Sellers offering insurance may only charge the actual fee for insurance." to mean that sellers CAN CHARGE MORE if they use a company like u-pic or others that are out there.