Auto Insurance Claims: third party claim settlement, legal obligation, repair estimate

Question
I recently had a a vehicle belonging to a state agency (in Califoria) run into my vehicle.  The collision was minor and no one was injured although there was about $1,500 worth of damage to my vehicle.  The insurance co. which handles claims for the state agency handled the claim promptly and sent me a check for the amount of the lowest of three repair estimates.  The check was made out to both me and the repair shop.  My questions is whether or not I have a right to have the check made out to me only and then make the decision whether or not to have the damage repaired and where, or do I have to have the repairs done at  the shop whose name is on the check?  When I asked the person handling the claim  she said that making the check out to both the claimant and the body shop was standard procedure and that she would have to check with someone else about making out a check to me only.  Although she did mentioned that if I did not want to have the damage repaired, they could consider issuing me a check for the amount of the repair estimate minus the labor.  Does this sound right?

Answer
Unless there is something really different going on in California,,,, oh wait; there's always something different going on in California.

Here is the Georgia answer.

I'm pretty sure the claims rep was mistaken.  As you are not the insured here, they have no duty to protect your lien holder with a two party check.  

You can have the check in your own name and are under no legal obligation to repair the car at all.  They have the duty to idemnify you for your damages and it is not their business whether you repair the car or not.   Do understand though that if you change your mind later and hidden damages are found, you run the risk of the statue of limitations running out.

Good luck!