How much has he paid already, for the design?
There are places where you could track down slightly better logos, & while the production should not be done with substandard artwork quality, it is not uncommon to proceed with design work using poor resolution images... assuming the client understands they will need to procure good art eventually, or pay you to create it.
If you have received a design deposit, you can check
www.brandsoftheworld.com for the insurance company logos... but if you haven't received any money... AND the client hasn't done anything to help set you up with good art... then I wouldn't encourage you to do the logo research or the layout, since I usually advise against desgning on spec, with the hope of aquiring the job later.
