Question concerning the behaviour of org-insert-heading; The manual states the following. >> If the command is used at the end of a folded subtree (i.e., behind the ellipses at the end of a headline), then a headline will be inserted after the end of the subtree. <<
However at least in my installation (Emacs 34.3, org-mode 8.2.10), the new heading is created prior to the ellipses. For example * Heading folded... ^ cursor here, then M-<RET> results in the following. * Heading folded * ... ^ cursor here