I always doubted the existance of the insurance bug. Until I experienced it myself, today. I will describe exactly what happened... I went to the Vesper graveyard to fight some of the undead creatures there. As we all know, some of those monsters loot items from their victims. Thus, all the valuable equipment should be insured. I am wearing a fully insured suit. I've been wearing and using this exact equipment for a full day, and I died A LOT. All items were insured, that I am sure of. I never lost a single item during the war, except gold, bandages and potions. Of course I had "auto-renew insurance" turned on; I had died a lot and never lost a single item. I had made sure enough gold was in the top level of my bank box to cover my frequent deaths: 50,000 gp in coins and 750,000 in check. I wasn't overloaded, nor anywhere near my weight limit. I carried approximately 150 stones when I died, and I am able to carry 530 stones. Well, I died and a shadow fiend looted me (they always do). When I came back to recover my corpse, of course my bandages and my gold both were gone. In the progress I managed to kill the shadow fiend and when the loot dropped to the ground, I was fast enough to recover my items. How astonished was I, to see my Nocturne Earrings lying on the ground! I hadn't noticed that they were missing, but I checked my paperdoll and it was true: The shadow fiend had looted my INSURED Nocturne Earrings!! Fortunately no damage was done, as I managed to recover it. As I clicked on the item, it did NOT show the "Insured" tag. This means that somehow during my death the insurance of that item must have been lost. I hope this report will help to resolve that issue. P.S.: I've been playing very frequently during the past 10 months, and never experienced such a loss before; except one time where I was stupid enough to turn auto-insurance off and forgot to turn it back on. This problem doesn't seem to occur very often. So there's no reason to panic!