Can an insurance company deny auto insurance coverage for a suspended license in CA state

This question is not so much a legal question as it as an underwriting question.
Is your husband insurable? Does your husband have avalid driver's license in CA?

Were you forthright and honest regrding your husband's licensure status when he was added to your policy in CA?

If a claim should be made under your policy as a result of your husband, then these could prove important questions. If, for instance, you did not disclose that your husband had a suspended license in AZ, then this cold be a "material misrepresntation" upon which the insurer may be able deny any coverages otherwise provided under the policy.

If he does not have a valid drivers license, he likely won't be able to get insurance. If he obtains a California license and his record shows clear, you might be able to add him.