The reason for the bug was that replaying of a query on slave could not be possible since its event
was recorded with the killed error. Due to the specific of handling INSERT, which per-row-while-loop is 
unbreakable to killing, the query on transactional table should have not appeared in binlog unless
there was  a call to a stored routine that got interrupted with killing (and then there must be an error
returned out of the loop).
   
The offered solution added the following rule for binlogging of INSERT that accounts the above
specifics:
For INSERT on transactional-table if the error was not set the only raised flag
is harmless and is ignored via masking out on time of creation of binlog event.
   
For both table types the combination of raised error and KILLED flag indicates that there
was potentially partial execution on master and consistency is under the question.
In that case the code continues to binlog an event with an appropriate killed error.
 
The fix relies on the specified behaviour of stored routine that must propagate the error 
to the top level query handling if the thd->killed flag was raised in the routine execution.
   
The patch adds an arg with the default killed-status-unset value to Query_log_event::Query_log_event.


sql/log_event.cc:
  killed_status as the value of thd->killed can be passed as an arg to the constructor.
  if the value is different from the default the arg is set to the current thd->killed value.
  A caller might need to masquerade thd->killed with THD::NOT_KILLED.
  So far only mysql_insert() uses such explicit way to tell the constructor about killing status.
sql/log_event.h:
  default arg to the constructor with meaning of killed status of the query. 
  if the arg is not explicitly provided the status of thd->killed will be snapshot 
  inside of the constuctor, which is potentially incorrect (see bug#27571)
sql/sql_class.h:
  extending killed_state with no-state member.
sql/sql_insert.cc:
  ignore the KILLED flag incl KILL_BAD_DATA when the INSERT query event 
  is created without an `error';
sql/sql_update.cc:
  Suggestion how to fix bug#27571 as comments.
mysql-test/r/binlog_killed.result:
  new result file
mysql-test/t/binlog_killed.test:
  regression tests also apply for bug27563, BUG#27565