Glen; I'm no lawyer, but I'll go out on a limb and agree with you. If you PAID EXTRA for insurance and the seller did not provide it, I think that you have legitimate grounds to lodge a complaint against the seller with ebay if the seller does not refund your insurance paid.

However; having said that, (#1) you must have the courage of your convictions by following through with a formal complaint lodged with ebay and ... (#2) a follow up with a negative feedback against the seller. Failure to do nothing on your part is like howling into the wind.