special issuance???

Does a special issuance show up on the airman's registry web site?

A chap I know needs a special issuance for diabetes. I bought a plane from
him some years back and had been letting him fly it from time to time.

I got a bug and checked him out on the Airman's registry. There it said his
last medical was dated in 2001 making it 3 years out of date.
The restrictions section mentioned glasses and "Miscellaneous restrictions"

When I confronted him, he claimed that all he had to do was have his doctor
sent Oklahoma a statement that he was fit every year and he was good to go.
In other words no 3rd class physical needed. !!!!

I am thoroughly ****ed since if he had an accident in my airplane, my
insurance would have been void and I would have taken it up the butt.

Is he right??