Question about negative equity and insurance write-offs on a leased vehicle

Hello everyone.

I have a rather complex question that seems to be more of an unknown issue to a lot of vehicle buyers who do not realize what happens when rolling in negative equity from a previous vehicle into a new car lease.

I was wondering if someone here could explain the circumstances in the following scenario:

1) You roll in a lien of $6,500 from your previous vehicle into a 36 month lease on a new vehicle.
2) You paid $5000 cash to cover the payment increase difference on your lease, effectively paying an additional $1500 on your lease but negotiating to a fair monthly capitalized cost/monthly lease payment number.

Let’s say hypothetically the car gets declared a total loss due to an accident, theft or natural disaster by an insurance company.

Is it true that they will only pay for the market value of the car, and ONLY if they have a depreciation waiver (OPCF43) and/or if the lease company (Honda) has Gap Insurance (which they do), they will pay off the remainder of what the value of the lease payments are + the residual cost. I have been told that you would still need to pay $6,500 to cover the original lien cost difference.

Somebody please help clarify this. Thank you!