Sure, if you already understand what it does you can think of it like that. If you are trying to explain it though, you need to say something like the manual does:
Add track(s) immediately after any tracks added via the most recent Insert operation. If no tracks have yet been added via an Insert, new tracks will be added immediately after the current playing track. If playback is stopped a new dynamic playlist will get created with the selected tracks.
One sentence for each thing.
You could explain it in terms of the insert position, but then you'd need two qualifiers: one to say where the insert position starts and one to say what happens when stopped.