missing car title

hello a good buddy of mine just picked up 76 z28 with 47k on it but there is no title for it the guy he works with has had it since 1981 he bought it from a guy that got killed the next day in a bike crash so he never got the title he calls the dmv and finds out the that there is a title for it but says rebuilt on it and it does not have a persons name its a insurance company name on it the car looks like it had a new quarter and door put on it so it was most like totaled by the insurance company and then sold and rebuilt whats the best way to get a new title i dont think he should call the insurance my be they might want it back since its still in there name and its a nice car almost mint the last time its seen light was 1985 its been coverd up since thks ed