Bad News! I have a engine problem. The service manager stated that I most likely a problem with a rod/ bearing.
I'd get another opinion before repair. Your symptoms don't clearly match a bearing problem.
Typically a bearing knock will not fade completely out after warm up. What more closely matches your described symptoms is piston percussion. This is even more pronounced with pistons that have a reduced skirt like the Insight. Until the Pistons are fully warm they can "rattle" in the bores. And with increased engine wear this noise becomes more pronounced, but always fades after warm up. My old Honda CRX HF rattled like this for over 250K miles reliably.
_IF_ it is a major internal failure like a bearing, an oil change using a paint strainer funnel to catch the drained oil will show the white metallic flakes of a bearing self destructing. Finer particles of metal will look like a misty sparkle in the drained oil when it is lightly stirred.
As Willie stated, carbon build up on the piston crowns can cause the piston to slap the head until the carbon is crushed into a powder. Frequent short trips of less than 5 miles and or low detergent gas will contribute to such a problem.
HTH and keep us posted!
John K. Bullock
aka. Insightful Trekker