Legal Question in Personal Injury in North Carolina

First, its not obviously fraud. Possibly fraud maybe even probably fraud but you should not assume it is obviously fraud. Be careful with accusing someone of fraud. That could net you a law suit for slander and/ or libel if it turns out the injuries were not fradulent. As to fighting it, if you can prove it is fraud, fraud is a crime and you local magistrate may entertain swearing out a warrant. You may also be able sue in civil court on various theories - again if you can prove the fraud. Your insurance company is most likely looking at this from a cost benefit analysis - which you should do too. Basically, if setteling the matter cost less than defending especialling if the odds of winning are low. The insurance company will settle and move on. While it sucks that the driver and passenger may be bilking the system with bogus claims of injury, you have to ask yourself can you prove it and is it really worth the time and effort to pursue it.