Can auto insurance companies demand information about people who live with you?

Auto insurance companies
The insurance company can ask you a lot of things that you don't think are any of their business, but if they are insuring your auto, they have every right to ask about all lisenced drivers in your household.

More input from FAQ Farmers:
Unfortunately yes they can, technically the National Highway Traffic Safety Administration (NHTSA) requires them to do so as part of the agreement of being a legitimate licensed insurance carrier. Remember, anyone withheld from the policy who drives and causes a claim they will laugh and deny the whole thing. You will then need a good lawyer.

I am a agent for a large company, and yes insurance companies have the right to ask you anything about the Occupants of your household. You don't have to answer them but dont expect to have insurance with them very much longer.