The way it works is that both names will be put on the driver’s permit and any paperwork, such as the transfer of car ownership, must be signed by all parties.
In general, if one party of the ownership drove and hit a person, the other party would not be held responsible for the accident. However, in some states like Florida, joint owners of a vehicle share liability in the event of an accident, even if the one owner is not directly involved in an accident
If you do not drive the car, you may not need to be on the insurance policy. However, it is best to check with your insurance company to see what their policy is regarding this matter. They will be able to provide you with more information and answer any questions you may have.