A personal loan (also called a signature loan) is unsecured and given only on your promise to repay. You can do whatever you wish with the money, but the bank or loan company has to ask you what you will use it for, a government requirement, to show that you are not borrowing for some illegal purpose.

The insurance company won’t care whether or not the cycle is paid off, as they will have no interest in the machine with you not insuring it (only buying liability coverage).

I have always bought my vehicles with savings cash or personal loans, and only secured liability insurance. The only (minor) disadvantage is that you could (possibly) get a lower interest rate with a secured loan.

yes as long as you don’t use the motorcycle as collateral for the personal loan.

wouldn’t that be defeating the purpose? And, besides, the loan company has the right to require whatever conditions they feel will secure their interest in the loan.

of course you can, an unsecured personal loan, you do whatever you want with the proceeds.
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“Does the loan company need to know what I’m doing with the money?”
No. But if they ask, you can tell ‘em.

“Does the insurance company need to know that I have a personal loan for the motorcycle or can i say its fully paid for?”
Say it’s paid for, because it is paid for.
The only connection between the loan and the bike is in your head. (that’s not a bad thing, necessarily)