I don't believe that is correct. At least, I'm pretty sure it wouldn't keep them from paying in Texas. In Texas, you must have car insurance to get your license. (Or fill out paperwork stating you don't own a car.)

So it's very common for them to sell insurance to people who don't have a license. You can't tell people "you must have an insurance to get a license" and at the same time tell them "You must have a license before you can get insurance."