If i understand you correctly you are saying that your insurance underwriter has stated that you are not insured after a specified period in the EU.
Take a look at the M I B website Welcome to the Motor Insurers' Bureau
which gives information regarding the law.
I have been told that a Green Card is not necessary for travel in Europe. Is this true?
It is correct that a Green Card is not required by law to cross borders within the European Union. This is because every EU country complies with the First Directive on Motor Insurance which says that every insurance policy issued in the EU must provide the minimum insurance cover required by law in any other EU country.
The above is taken from the green card FAQ, so you are insured just the legal minimum for the EU country you are in, you will not be fully comp.
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