Jeff, if you'll read my post, you'll see that I'm commenting on a specific situation. That is, an eBay buyer pays by Paypal, the eBay seller ships without a tracking number/insurance, and the package is lost. In this situation, Paypal will refund the full purchase price to the buyer. Period. My point is that sellers are responsible, even if they try to disclaim this by stating the buyer didn't buy insurance. Insurance doesn't matter in this situation. This has come up on this Board before, take a look at this very good post made by Robert Eisenstadt:

http://www.thechipboard.com/cgi-bin/bbs521/tcbarc17.pl/read/617869

I repeat "Sellers that accept Paypal, but try to disclaim any shipping responsibility without optional insurance are, in my opinion, foolish."

Remember, I'm only discussing a specific type of transaction, involving eBay and Paypal.