1. So, assuming there was insurance, would this accident be covered? Or
would the insurer say:

a) you didn't put it together correctly; bad dog, no coverage
b) you didn't comply with the AD; bad dog, no coverage
c) both


You clearly don't know how insurance companies work. They will check
that the required parts of the policy have been complied with (annual
inspection, BFR, etc.). There is nothing in the policy (at least the
ones I have had) that require compliance with all ADs (the annual
inspection is supposed to take care of this). And there is also
nothing in the policy that negates coverage if miss an assembly step.
Read your policy: it is a contract that can't be added to (or
subtracted from) if and when there is a claim.

Tom Seim
Richland, WA