Being in AA is great! be sure to stay there and stay sober---that will go a long way to proving your fitness.
Suspension of visitation based on a threat to cancel insurance makes absolutely not sense to me from a legal perspective. The courts simply do not operate that way. It had to have been
something else that they based the termination of visitation on.
Your daughter being afraid of you, even if correct, is not a basis to deny you custody and give it to a sibling. However, it will be a different story if the fear is a result of previous child abuse---physical or emotional---by you against your youngest daughter.
Again, this is something that is clearly beyond the scope of this venue to deal with. You so horribly need a local family law
attorney to assist you in this very complicated matter.
You get an attorney and fight the attempt to take custody of your child from you. If you fail to do that, based on all the issues that you have mentioned permeate this case---I'm afraid that you may lose custody of your daughter---at least temporarily.
I wish you success in the hearing.
Because I help people here, like you, for a living---this is not a hobby for me, and I sincerely XXXXX XXXXX abiding by the honor system as regards XXXXX XXXXX I wish you and your family the best in your respective futures.
Would you be so kind as to Accept my Answer so that I may be compensated for assisting you? Bonuses for greatly informative and helpful answers are very much appreciated. Thanks Again,