Just a small update. The APA emailed the following. They did not respond as yet to the question of what happens to my insurance if the APA cancels my membership for any reason. I have replied posing that specific question again for comment.
Your membership package for 2014 includes both membership and insurance. It cannot be divided up to membership and insurance separately. As you have elected to pay your 2014 Membership Insurance on instalments, you have agreed to the instalment declaration to pay the full annual amount for 2014. Your membership insurance cannot be cancelled until 31st December 2014 unless under extraordinary circumstances.