If you have LTI on a ship, is it still possible to permanently lose that ship forever?

I don't know of a way to permanently lose it.

What about if it's illegal?

I don't want to speculate, honestly, because people will go crazy. I think that's something that will be explored with the PU team.

If someone's trying to run insurance scams, duplicating ships, stuff like that.

Yeah, the insurance scam stuff for sure.