Buying a car in Montreal - Confused

So here’s the thing.

We are already approved on the car loan and the financial contract of the car is already signed by the main borrower which is my fiancé’s mom. The only thing left is the registration paper work.

However, since my fiancé’s driver’s license is suspended because of unpaid tickets he forgot—they want my name in the registration instead (in which the dealership agreed to because they will be the ones registering the car for us.)

We are confused because the financial manager (business manager whatever he’s called), are pushing to have my mother in law’s name to be in the auto insurance even if she’s doesn’t have driving history nor a driver’s license. (To be the primary driver)

But to us, it makes sense that the name in the registration and the name on the insurance should match. So we’re confused why they’re pushing my mother in law to be insured with the vehicle.

Another fact is, we already have auto insurance in my name as the primary driver. They’re pushing their (partner) insurance company that it’s “okay” that even with no license, my MIL’s name should be on the policy.

Should we ignore him and stick with the auto insurance we have or what.