Does car insurance work even if the person does not have a license?

My sister bough a car, she has no license so she can't get it register, but my cousin said she will let her put the car under her name and set insurance, until she gets her license back, but what happens if my sister gets pull-over for whatever reason, will my cousin get a ticket or what??
I know that this is all stupid but OH well they are over 18, so is up to them.

They live in Texas by the way.