Car Dealership and Accidents

My question involves an injury that occurred in the state of: Iowa

My husband was rear ended by an individual who was under the influence and his vehicle was purchased only two days prior. The guy was drunk and had no valid insurance though he provided my husband and the police an expired insurance card. Now my husband has no car and the guy has no insurance. So a two part question.
Can the dealership legally sell a vehicle to someone with no valid proof of insurance, even if that person bought it outright? I know they can't be held liable for the accident but is there anything that can be done in this situation?

Car Dealership and Accidents