Possibly it would be useful to go back to the original post that spawned this tangent since you seem to have moved pretty far afield from it?
He was citing the case of someone "losing" what they paid for FSD by crashing their car with FSD.
I pointed out insurance would cover that.
It seems even you agree they're obligated to replace a Tesla with FSD with another Tesla with FSD.
Once you agree with that, I'm not sure why you'd care about the specific policy details involved. The guy who crashed his FSD car still ends up with another FSD car- without needing to pay anything out of pocket to buy FSD again. (assuming he goes with a tesla as his replacement car).