FarNorth
^I spoke to my H about the insurance situation and he says he thinks she is OK to drive it as a third party. I could not convince him otherwise.^
He actually has no idea if she's insured or not, does he.
You could both be in legal trouble if she has an accident with your car, or if the police happen to check on her.
The issue really is if she hits a pedestrian , praying a car is costly to the pocket but OMG if she were to hit someone! They'd get zero in the case of serious injury problems and it doesn't bear thinking about