Hi Bobbi,
I've turn-off Auctiva checkout for this and other issues associated with hand-over of checkout responsiblities to Auctiva. I don't dislike Auctiva, I'm just sensitive to what my bidder (become customer) sees and experiences at the point they hold me responsible.
Currently using standard ebay checkout, my PayPal printed Packing Slips do correctly itemize the Insurance. I print my shipping labels there too, so it's a reminder to buy the insurance at packing time, i.e. switching to ebay checkout doesn't automatically buy the Auctiva Insurance.
I am interested in switching back to using Auctiva checkout (after 2+ years), so am looking at residual problems and work-arounds. I would suggest always sending the buyer the Insurance coverage Email that can be done on the purchase. That's not a fix, but it's at least a way to let buyer know it's a done deal.
Danno