Paypal payment and insurance and shipping question that could be an easy way... maybe?

YQQ

You all know that PP and Feebay are now rivals, sort of. Buying / selling used to be easy. But now greedBay wants to get more by controlling all monies.
question:
can a seller sell a coin to a buyer (both PP members in good standing) at a price agreed on between the two and use Paypal invoicing and payment system for payment?
Now, does this method of payment also include the Paypal insurance for the seller and the buyer, provided the item is shipped tracked with shipping and delivery verification? (transaction would be between Canada and USA and or Germany)
I had a chat with a PP rep who called me back from somewhere in the outskirts of a small town in SEA (south est asia). not Seattle.
He said yes it does... but does it really? he said DES and the from a location do not matter.
If this is correct, then one would not need the insurance from a postal service? right? Because only one would pay... in case a claim is needed.
If it is as said by the PP rep, then there could be a lot more buy/sell going on between some countries without having to lie about the value of the contents at the PO..

Thank you all for your input
H