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It’s not 100% clear that it is a cash offer - OP says they’ve asked for cash, but it’s not explicit that the insurer has agreed. If the insurer has not agreed cash, I would refuse - the OP doesn’t know the history of the replacement machine from laptops.co.uk and wouldn’t have AC+ on it, which in my mind is a must if you have a near 2K laptop that isn’t brand new. I understand that AC+ can now be renewed on a monthly basis past the initial three years, but it’s tied to the Apple ID - there’s no way for the new owner of such a machine to obtain this cover.
Its a brand new laptop so the OP would be free to buy AppleCare in the first 60 days of ownership
I wouldn’t be surprised if they had considerable difficulty in doing so - Apple hasn’t sold that M1 Pro for coming up to a year and the models on their own refurb store are M2. Are LaptopsDirect even an authorised reseller? I can understand why the OP wouldn’t want this machine and if the insurer refuses to pay cash, I would push that theirs was 15” and this is smaller in an effort to get them to settle in cash.
Not in the slightest, just boot the computer for the first time, connect to the internet, setup iCloud and it will be there at the top of the setting menu for the next 60 days.
To the best of my knowledge there is no requirement to be an "authorised seller" for the user to be able to get AppleCare
