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v5 and insurance??!!! Has to be the same name?!

Hello, people. Help me out to understand. If the car is on the person name A, insurance first driver under name B and the second driver is name C, is it legal to drive someone's car like this? The other day the car was towed from double yellow line, as an insured under my name, I had to go and get it. They just hade check the insurance paper. Can they find out that the car is on someone else's name? What would've happen?

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