Yes, hence why I pointed out it didn't help in this case (there's already an NPE demanding license fees).

I don't know if the second point is a big deal. Even if they choose to settle, you've still mitigated your risk without going to court. And I suspect a patent litigation insurance agency is going to be motivated to negotiate very small settlements and/or actually fight it out in court, lest they gain a reputation as the company that hands out license fees.