Does licensed driver living in home have to be insured even though they do not drive any of the cars?

Under the terms of your Insurance Contract, All licensed drivers in your household and all drivers that have access to your vehicle are required to be declared either as a covered driver or not. If not, then you can request they be excluded from coverage on your policy by way of form 515A.

Failure to disclose a licensed driver in your home is a violation of the terms of your Insurance Contract and can result in voidance of all coverage.

Bare in mind that once excluded the driver will have no coverage under your policy for any accident if they do for some reason drive the vehicle.