[al8apex]

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the dealer that sold it to my neighbor "jumped" the title
It is impossible for a dealer to "jump" title. Dealers don't put titles in there name, that is why titles have an area for dealer reassignment. It lets the DMV know where the car was between the guy that traded it and the new buyer when it is titled in his name. Now the previous owner that had it when sold to the dealer MAY have jumped title, but that is of no concern to the dealer as long as the guy selling it has a legal bill of sale and the title is signed by the owner of record on the title and itr is notorized if required.
When you buy a car from a dealer if you were able to do a title search you would only see the previous owner. If you had deeper access to DMV records it would show the dealer that sold it between you and that other owner, but you would already know who YOU bought it from.

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[b]the dealer had it "on consignment" and never touched/reassigned/whatever the title, the check was made to the dealer but the title came directly from the consignor ...

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my neighbor was out the $65k until it was awarded last week and he DID get a check from his insurance company ...
My GUESS would be that HIS insurance company will be looking to the dealer for reembursment.

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his insurance company had investigators working on it from day one, reimbursement is unknown from ??? the dealer needs to lose his bond and go to jail for tax evasion too ...