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I've always taken it that they do. However if memory serves there is a time limit stated on the policy (I don't have it to hand right now.)
They shouldn't really have a clause stopping this as it will also stop instructors taking their students abroad to finish courses. For example if I took an OW class for dives 3&4 in Egypt, I wouldn't have a work visa, but I'd be allowed to finish there training as they have paid me outside of the country.
I use DAN Europe Insurance, from the UK and working in Thailand. I now have to use The Gold Pro plan as the cheaper plans limit the amount of time I can be away working - with Gold it is unlimited.
Nowhere in the documentation does it mention that you need a working visa to validate your insurance.
The Gold Plan covers Liability, Diving Insurance and health/accident insurance unrelated to diving.
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