LD, SW... I mostly agree... although I used the term 'insurance-cut' exclusively related to damage repair of adhesive-bonded-metal or all-composite or aluminum/composite sandwich [core] bonded structure.
Outline the damage, as detected by ultra-sonic... or tap-test... etc... THEN extend the outlined border [0.25-to-0.50-or much greater, if in-doubt] to capture any internal defects that may not have been detected by the NDI...and/or to make the damage cutout shape' more 'smoothly-regular' for the repair.