This may be a state-by-state, company-by-company situation.
In NC, everyone with a driver’s license is required to have insurance coverage. In NC, if a licensed driver’s insurance is cancelled or dropped, the insurance company immediately notifies DMV, who then contacts the driver and cancels their driver’s license unless the individual provides immediate proof of insurance. The individual is not allowed to drive again until insurance coverage is reinstated, DMV is officially notified, and the driver’s license is reissued. There may be fines incurred for not following the proper procedure.
Check with your state to see if there are similar laws/restrictions there.