This is not correct in CA at least.  If the insurance company here totals
your car they send that information to CA DMV and that's the title on
record.  They send you one saying "Salvage", although you still have your
original.  As soon as someone tries to transfer it they will get a salvage
title and if you haven't disclosed that fact, it's a felony fraud count
[potentially at least, never heard of an individual being prosecuted for it,
just dealers]

Mike

 The only time a salvage title is generated is when the car changes
> hands.
>
> George
>
>