Sorry...not true. I have confirmed the following with our insurance company, the Indiana DMV and the Florida DMV.
Our daughter works and lives down there. She is using a vehicle that is titled in mine and my husbands name only! We do not wish to have her name on the title since technically it is our car and we wish to keep it in our names only. Our insurance company has the vehicle listed as "away" on our insurance policy.
She did get a Florida Driver's License because she lives there and when we went to the DMV there (I was with her) I asked about the car and explained that it is our car and we are the only ones on the title. They said that was fine, but if we ever decided to add her name, then we would then have transfer everything to Florida.
If your daughter is only there for a few months for the program, they ARE NOT required to change anything...it is the same thing as attending a school out of state. Now, that doesn't mean that a police officer won't stop and say something to them, it happened to my daughter while still on the program, but unless they are staying there permanently, they are not required to change anything for just a few months.
Again, I confirmed this with the Florida DMV in person.