That's very nice for your friend to offer.
1. It's very common for insurance companies to have surrogacy exclusions. Some insurance companies will bill up to the amount of comp. Generally the IPs insurance will NOT cover the surrogate. This would be the surrogates insurance. I have only seen the IPs insurance cover a surrogate once, maybe twice.
2. I would not do a insurance free surrogacy. You can buy insurance for your surrogate during open enrollment. I had pre e during my first surrogacy. Emergency Csec. My bills alone were $300,000. The baby's bills were almost triple that. I can't imagine not having insurance with that. A normal vaginal delivery could run maybe $10k , cash pay. But, that amount varies from hospital to hospital.
3. As a surrogate, the IPs usually have a CC on file. If I did monitoring else where, they would run the charge through their CC.
If your insurance has infertility coverage, you are very lucky. This is something you will have to dig into more.
4. Yes. A lot depends on her age, how long ago her last preg, preg history, weight, etc....
5. No, she isn't required to have another Csec. But, this is something she needs to discuss with her OB. Some OBs and hospitals will not allow vbacs.