From what I understand, it is pretty standard practice for flight schools to get their students to do their 'PIC' requirement with an instructor on board, as an 'observer', to keep the insurance folks satisfied. But in the CARs regarding the experience requirements, the following line is found:
Maybe I'm way off the mark with this, and I'm crazy in understanding that FTUs do this practice. But I somehow doubt that a C-180 on floats can count as a two crew aircraft. So how do schools get away with this?421.38(1)(a)(i)
(B) a minimum of 5 takeoffs and landings as sole occupant of the aeroplane, except for two crew aircraft, in which case the takeoffs and landings shall be done as pilot-in-command.