I know I am not in Canada.
here in New York, Insurance is tied to registration (for auto's). if for any reason your insurance laspses DMV is notified and your registration is revoked. If you do not turn your plates in you are fined $7 per day for each day, and you cannot re-register that vehicle until and equal number of days have passed. So if you get pulled over and have legal plates you have insurance, although we are still required to provide proof of such to the officer at a stop. The officer can give you a ticket for failure to produce, or a ticket for no insurance (Even though he knows you have it). If you are ticketed for no insurance just produce proof and the case is dropped. If you are ticketer for failure to produce your done.
Bikes, ATV's and other "recreational" vehicles are not tied together. So proof is still important. I was pulled over once and the cop was nice, wrote me for "no Insurance" it was a worse ticket to get, but if I was telling the truth and I actually had insurance it would be dropped (Which it was).
While I hate insurance companies, I hate people without insurance even more (so much headache and problem after an accident). The above situation seems like a good idea.
And the "worst ticket" to later be dropped is similar to here except we get 72 hours to show and then no court at all (for the no insurance ticket, not the no insurance card ticket).