Does SIPC insurance cover rehypothecated cash or securities?

This seems to be a core question

I'm not clear what rehypo.... is
but below is my question to SPIC and their reply.
(My understanding of what they have said is that both futures contracts and cash in those accounts are not covered -- re MF Global).

----------
Under the Securities Investor Protection Act (“SIPA”), cash specifically refers to cash in a securities brokerage firm account from the sale of or for the purchase of securities. The term “Security” is defined in section 78lll(14) of the Securities Investor Protection Act, available at https://www.sipc.org/pdf/Securities%20Investors%20Protection%20Act.pdf. With respect to futures, the term “security” only includes security future as defined in 15 USC section 78c(a)(55)(A). Cash from the sale of or for the purchase of investments that are not “securities” is not protected.

Sent: Monday, November 14, 2011 3:52 PM
Subject: clarification on your website
-----------------------------------------
Monday 14 November, 2011

I read this to mean that the "commodity futures contracts " are not covered but the cash in the commodity future account is covered. Is this correct?

Thank-you
from your website:
"Investments protected by SIPC. The cash and securities – such as stocks and bonds – held by a customer at a financially troubled brokerage firm are protected by SIPC. Among the investments that are NOT protected by SIPC are commodity futures contracts (unless defined as customer property under the Securities Investor Protection Act) and currency, as well investment contracts (such as limited partnerships) and fixed annuity contracts that are not registered with the U.S. Securities and Exchange Commission under the Securities Act of 1933."

^ That is consistent w/ my understanding of it. "Currencies" means FX positions.

I'm going to call SIPC today regarding rehypothecation, will post what I learn

From what I've read, they do not cover futures/options accounts. I'd be interested in knowing whether or not accounts with no positions open are covered though.

The answer is simple: No insurance on your futures accounts period. None. Zero. Zip. The fact that so many people on the survey think their funds are safe is prima facie evidence as to how ignorant most traders are to risks they are taking.

Ignorant is not pejorative it simply means unaware.

SIPC attorney confirmed over the phone that rehypothecated securities are covered under SIPC insurance

What I've done is split my bankroll between two brokers and then maintain short positions on the other broker's stock from each account. In this manner I make 2/1 when one of the brokers fail. Rinse and repeat as each institution fails. I've cleared close to $7 million already and figure I should have $20 to 30 million by the time I'm 50.