I have a 1997 Larson 186 SEI. Mine is an I/O, and it also was repowered (before I got it) with a 350 Mag. I had no problem getting insurance and the boat is quite stable at WOT. It had a slight tendency to chine-walk at top speed, but a set of SmartTabs completely cured that. It’s a solid boat.
Starting in ‘96 or ‘97, Larson began building boats with engineered stringers made without wood. This alone, in my book, would put it head and shoulders above the 93 Bayliner, which would’ve been built with a wooden substructure and, at the time, very shoddy construction practices. The Larson does have a wood core in the transom and a fiberglass covered wood deck. If you look through the restoration thread (linked to in my signature) you will see a lot of the below deck construction of the Larson.
I think the 97 and 98 models were very similar, so if you have any questions as you look at the boat further, I would be happy to help.