Regarding the insurance:  my Progressive policy for the state of SC states that coverage applies to me and any relative living in my household, and any person I, or relative in my household, may give permission to ride my bikes.
Of course policies vary considerably based on what you choose to buy, or by insurance company, and between different states.  
The only way to know for sure is to read your policy VERY carefully.
But even if the other person is covered if you give permission for them to ride, I don't think it's a good idea to do so unless I/you know they have the skills to handle it and have confidence in their GOOD riding judgement.

ToesNose wrote on 12/09/12 at 10:06:39:

That is actually a big deal.  If a person is not "comfortable" on a bike, they should not ride it.  It is risky enough, and being stressed does not help.  I have loaned out bikes before for "sizing purposes" and had no problems.  Some to brand new riders.  (In a parking lot, with me right beside them coaching.)  But I have said no to several as well.

First off I DID NOT read any replies. There was a great funny article in one of the cycle magazines this month. The title was "May I Borrow Your Personality?" Long story short, the answer is no. I would let Versy, Serow, Justin, Preacher, Baby Hog, KChris, and a few others ride my bike but they know better than to ask. A swap ride would probably come up or maybe a straight out loan, but it wouldn't be asked...just kinda happens. Exactly three people have ridden my bike besides me since I bought it. A Harley friend who hangs with a drag racing crowd, a friend who rides KLR 650s now after earning a wall full of trophies on KTMs, and my brother, who after 20 years off bikes didn't figure on first gear being so high and ran through his wife's flower bed. Just say no.  

Give them directions to the nearest Suzuki dealer to ask them about a test ride.

PR, most stateside metric dealers don't offer test rides.

I've let friends who've ridden for years borrow my Savage. But ONLY when it was in "back up bike who gives a s**t" status. And at that, if they weren't current or former club members they were told NO.

AND I always required some kind of security against the bike, usually the titles for at least 2 bikes, since mine is heavily modified from stock. Once a fellow ex-club member borrowed it with his girlfriend as insurance... She's a lot cuter than the Savage...

Hi ColoS40, this is Maurizio from waaay across the Ocean.

One thing nobody has mentioned.

Detail.

Even among two bikes of the same model... no two bikes are the same.

Throttle response, accellerator cable lag, clutch lag, rear brake setting...

I've listed only four issues which will be typical of my bike, vs. your bike vs. anybody else's Savage/S40.

The bike your friend used for MSF Class was not only a different model with different performance characteristics; it had different throttle response, braking response, seat height, foot peg position etc...

So... what if all goes well, she rides around the neighborhood and locks the front wheel on gravel as she proudly comes to a stop in your driveway?
Who sues whom for damages?  

Are you sure you want to lose a friend? I'd rather look selfish for a few days than lose a friend forever  

If this blithering idiot has a motorcycle endorsement, direct her to the local motorcycle dealership and have her ride one of their demo's.  If she drops it, she can work out the financial issues with them, not you.