In my experience, the longer you wait to get medical treatment after a traumatic event the more issues and questions the insurance adjuster will raise. I would start treatment in an emergency room if possible.
As others have indicated, there are several factors to be considered in determining whether $50,000 is all the coverage that's available. The amount of insurance coverage bears no relationship to the value of the life that was taken. In fact, all too often there is insufficient insurance coverage for the loss of life or serious personal injury. This is why consulting with a good personal injury attorney is very good advice. Other avenues of recovery could include a dram shop action, product...
I would strongly encourage you to not trust that the insurance company will be compelled to act in your best interest. Instead, get a free consultation from a lawyer who specializes in car wreck cases (not necessarily a TV advertising lawyer who doesn't actually go to trial) and find out what your rights are. Better safe than sorry. I wish you the best of luck with this situation.
I'm not a California lawyer but my suggestion to you is for you to search on Avvo under Find a Lawyer for a competent lawyer who specializes in this type of case and get some answers. You are much better off not going it alone.
Generally such cases are brought by a personal representative of the estate and the proceeds of a successful recovery are divided by the law of the states where the action is brought. Many states would allow your friend to receive some of the proceeds but you need to check with a lawyer in the state where the action was brought.
If you have hired a lawyer and it sounds like you have, the insurance adjuster should not talk to you directly. You would have to fire your lawyer first (I am not recommending you do this) in order to talk to the adjuster about settling your claim. Even if you fire your attorney you may well owe the attorney for expenses and his or her time. I suggest you have a heart to heart with the attorney to get a realistic expectation of the time required to finalize your case. In many states you...
Typically when a health insurance carrier or a car insurance carrier makes payments for medical bills and you recover for a personal injury claim the insurance carriers will have a subrogation interest which gives them the right to get some of their money back. Check your policy to see for sure if this is addressed.