Permissive use in Texas, can anyone really drive the car?

So this Asian couple I know, both in their 60s, wanted to save on their car insurance. The husband got into a car crash about 8 months ago. Totaled the car and had to replace it and was at-fault and had to cover the other party as well. Preimum rose. Had Geico. Then the husband talked to an Asian state farm agent and got a new policy that saved him hundreds. I was just helping them setup their online account and looked over their declaration documents. The policyholder has switched over to the wife and the husband is nowhere to be found on the driver list. I asked them about this and they said, oh it's not a problem. The agent said everyone in the household is covered. So I poked around online and some sites say Texas is a permissive use state where coverage follows the car. It's all very generic stuff on law firm blogs and no real anecdotal evidence. Other non-Texas responses range from "this is insurance fraud, a felony, you will be prosecuted" to "many agents do it and it's shady on them and risky for you." So should I bother trying to convince them the risk isn't worth the savings? Or is the risk overblown? Especially in Texas?