That insurance i told you is Visitotrs to Canada , and that cover you the medical has to be paid in Canada , i am a travel agent here in Canada and i know what CIC told us to do or this situations, and Foreign affairs service told us same ,
as for the airlines tickets just call the airlines and tell them just to reserve the space, and dotn tell them that is for the visa issue, they will give you time limit and automaticly the resrvations cancell if you dont purchase on that time .
dont book anything online , cuz you are not dealing with the person , and sometimes you can losse money it is so many junk web site , and dont trust them
Good luck