RE: Can insurance pay lien holder without my approval in case of total loss?
They can try, but I would keep fighting them on it. I would call the state insurance commission and complain about this. I would also call the lien holder and tell them not to accept any money from the insurance company. You may want to drag them to small claims court. It is a big pain for them and cost you nearly nothing. I believe CA allows up to $10,000 in small claims.
I’m assuming you have some disagreement over value of the bike with them and they are trying to low ball you.