RR;
The pin acts as a 'diverter' valve.
If It's in, you have a 'full flow' filter using the openings in the block etc.
If It's out, you have no filter & the holes are pluged except the one in the rear which is used for the pressure guage.
I usually just pull the pin out, (if It's not already) on mine. No chance for a lawsuit that way,
or ANY other BS.
If the customer alters one of my engines & there's a problem; "It's on them".
PS: If you plug the holes with it (the pin) in, oil will NOT flow to the rear of the engine.