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A CFII giving simulated instrument training without a medical is clearly NOT legal. The only instrument training a CFII without a medical could give would be instrument training to a rated and current instrument pilot in IMC conditions.

This is an older document (1997) but the text in it is referenced in more current opinions:

http://www.avweb.com/news/news/184484-1.html

from the link, edited:

AOPA recommends that the FAA qualify the language in § 61.3 concerning "required crewmember" to state that the instructor may not act as a "crewmember required under the aircraft's type certificate" without a valid medical certificate. AOPA believes that this modification would permit a flight instructor to provide instrument instruction and act as a safety pilot under the regulations without a medical certificate.

FAA Response: In response to AOPA's comment regarding instructors who act as safety pilots not being required to have a medical certificate, the FAA notes that § 91.109 specifies that a safety pilot is required to conduct simulated instrument flight, which makes the safety pilot a required crewmember. Therefore, an instructor in such situations would be required to hold a medical certificate.


Do you have a citation for the ruling you're recalling?