Legal Question in Credit and Debt Law in North Carolina

This question belongs in personal injury/insurance defense. I am not a personal injury or insurance defense attorney.

If you were at fault in causing the accident, then you are responsible. Your insurer has a duty to defend and indemnify. What this means is that the insurer only has to provide a defense to you up- to the limits of the policy, whatever those are. If the claim is worth more than the policy limits, the insurer will pay the policy limits and you are on your own. If your insurer has bailed on you, then it may be that your policy limits are exhausted as the claim exceeds those limits.

I am guessing that your passenger was seriously injured if her claim was for $75,000. While the passenger could file the claim on her insurance, if you were at fault, then you are ultimately liable for the damages. If her insurer paid the claim, then her insurer either will require her to sue you and they can seek subrogration from her or she can assign her claim to her insurer and they can go after you directly. Your passenger is entitled to compensation for not only her medical expenses, but also her lost wages and pain and suffering.

I don't know anything about the accident, but you need to get up with a personal injury/insurance defense attorney now.