I would almost guarantee that it is a clutch system like previous Honda CVT units. I wouldn't imagine that Honda would redesign a transmission to be so special to the Gen 2 Insight in that it would screw up efforts to keep the cost down....Plus, if they did, I think that it would be more inefficient. But then again, they did redesign the IMA system for less voltage (fewer cells).
The clutch system is not like the MT model. They are wet clutches and there is more than one in there. Start clutch, forward clutch etc....
JoeCVT = Just your average CVT owner
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2004 CVT Red Insight (purchased May 2011)
Relocated outside temp sensor near mid engine
No other mods performed yet 
2003 CVT Blue Insight
Modified version of MIMA_L (with foot pedal)
Automatic warm air intake (all season)
Low Speed Auto Stop (LSAS)
ABS - IMA regen enabler (allows regen during ABS)
Relocated outside temp sensor near mid engine
Cooling fans powered by 12V Solar Panel
2001 MT Blue Insight (purchased Nov 2011)
Not registered yet
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I2 CVT, torque converter or clutch?
