I was about to stop listening when it sounded like QA was ending, but I am glad I stuck around. There was an extremely revealing exchange when someone asked why blessed items did become equipped when EZ-looting your corpse. The explanation for the issue was that blessed items never hit your corpse. Drawing from this we can assume that insured items at some point do hit your corpse. So if for any reason there is an issue with those items being put into your backpack, they will stay on your corpse!