Unable to cash ins check & I am lien holder

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 the drivers info and she said that she attempted to prevent the car accident but ended crashing into a tree. I asked for a copy of the police report and she never contacted 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 the remaining balance since she was the one borrowing it. 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. He keeps saying that she has to authorized him to send me the check without her name since its her policy. I keep insisting that I am the lien holder and need to cash it and she is refusing and will not sign anything unless I hand over the check to her. 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, is that true? What do I have to do to get the check under my name since I am the lien holder and want to get paid?