Yes, Barry. This was the common method for many of these off shore boats at time of manufacture. Donzi, Magnum, Cigarette, Formula, Martini, Nova to name a few. Many of the restorations I see replicate this method with the caveat of a properly coated tank. The tank is blocked in place to prevent the expanding foam from pushing it out of position. Then the liquid foam is poured in. I was told the foam under the tank supports the tank structure when loaded (and g-force applied to the contents). Some installations leave a tab or bracket of sorts, attached to the stringers. Maybe this is considered in addition to plastic foam to satisfy the "other than plastic foam" requirement.
Perhaps "encased" in the regulation refers to all six sides covered. Typically these tanks are not foamed on top, thereby not being totally "encased".
There is a drain tube that runs directly along the keel under the tank to pass any moisture.
Picture is my 1965 Ski Sporter before removal (this tank was steel) of the tank. Certainly not the neatest of jobs... I am replacing this tank due to age. It was difficult to remove and did not leak. Not bad after 50 years.