Does RMS recognize "Block Insert" or DCA points?

No.

For elevation values, RMS recognizes only polylines,
lines, and points.

Some Softdesk (DCA) applications place the elevation
in an attribute tag that is contained in a block
definition. However, the block is inserted at
elevation "0.0" -- hence RMS reads an elevation
value of "0.0".

If you have Softdesk points that you want to make into
RMS cross-sections, this is very straight forward. We
provide a LISP program RMS_CDCA that makes
cross-section from DCA points.

1. Copy the RMS_CDCA.LSP and RMS_CDCA.DCL files into
your RMS directory.

2. Run RMS

3. Load your drawing

4. Load the lisp file by typing

(load "rms_cdca")

5. To run the program type:

rms_cdca

6. The select button allows you to select the points
which you want to make into a cross-section.

7. Run the LISP program again for each cross-section
you wish to make.