The negligence level does not, as a legal matter, change the recovery rights as to replacement value. However, as a practical matter, it should allow you to take a tougher stance with the insurance company. Good Luck
Even though they are filing separate lawsuits, which they are allowed to do, there will only be one settlement or judgment. Your liability insurance company will appoint a lawyer to defend both suits, at no charge to you. That lawyer will be more knowledgeable than the insurance adjuster. As long as the case settles, which most cases do, there will be a settlement that resolves all claims by both the injured party and the comp carrier. Good Luck.
This is a difficult situation. As a technical matter you can sue the person responsible, but if they don't have insurance they probably don't have any funds to collect. Hopefully you have health insurance.
The first thing you want to do is turn this over to your insurance company. The will provide a lawyer at no cost to you, and they will pay any judgment against you (if there is one) up to the amount of your auto insurance. Good Luck
I believe in disclosing limits in a situation like yours. There are benefits and costs as noted by the other lawyers who have answered. However, with this serious an injury, there is going to be a lawsuit and therefore they will find out in the process of that lawsuit. Good Luck
As a general rule it is unlikely that they would refuse to settle for your policy limits if you have no assets. I suggest you tell your insurance adjuster that you have no assets and have no money to contribute to a settlement. Then instruct him to try and settle within the policy limits. Good Luck