desperate owner

I am the lien holder for a car insured by a friend who borrowed the car for a year and paid part of the car payment. She fell behind and the repo co. came looking to repo the car on 3 different occasions. Needless to say, she ruined my credit and co-bororwer's credit. I gave her an ultimatum and said if by monday she had not cure the default, I would come take the car from her. I live in Chicago and she knew I would not be able to get before the deadline because of my work schedule. Over the weekend she called me and informed me she was involved in a car accident and had total the car. I asked if she was able to get thedrivers info and she said that she had to attempt to prevent the car accident but ended crashing into a tree. I asked for a copy of the police report and she said she did not contact the police department since in TX a police report is not necessary to file a claim. Long story short she wanted me to call her insurance agent to authorize him to send her the balance after the lender was paid off. I refused stating it was my car and I also paid for it and deserved to be refunded since she was the one borrowing it but I was paying for partial payments. Now the progressive agent sent me a check made out to her, myself and the co-borrower. She refuses to sign the check or authorize to cash it and the agent does not want to help. Am I entitle to get the check made out to myself and co-borrower by law if I was the lien holder if she refuses to sign the check? Can I file a complain with the Texas department of insurance if the insurance rep does not want to issue me a check under our names? He insists that her name needs to be on the check because she is the policy holder? What do I have to do to get the check under my name since I am the lien holder and want to get paid?