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




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