However, excessive shifting could indicate that the opener isn’t secured tightly or aligned correctly.

That is a recipe for disaster, and if it gets around there are hundreds of people that will provide him compelling ways to lose it all in "good" investments.Alas, financial self-education is something that is hard-won and severely lacking in this country.  

If the insurance company sends me a two party check can I accept the excess funds without penalty?

@Brady Hales @Jason Marino, aren't you supposed to register this WY LLC in the state you are living in as it is considered doing business from that states and then losing the anonymity purpose of that WY. my understanding is that the reason to put it into a irrevocable trust is for asset protection purpose as you do not own these properties anymore. what am I missing ?

So, they lose the option fee, not the money down.FYI:  that's nothing new. 

I am about to lose my mind. 

It should have a good spread to ensure you're not losing money in the long run.

Commingling trust accounts is the number one way Brokers lose their license as such I NEVER had a trust account.. but then again I never did PM just general brokerage..

Regardless, the person with the umbrella policy has no big concern and should not lose a wink of sleep.  

Of course they still need to meet the other criteria, but I do think 5x is excessive.