impact of lawsuit to insurance company

My husband had a car accident in January. The Police did not issue an citation to either party because both my husband and the other party claimed that they had the green light when the accident took place. There was no camera or a witness. Our insurance company notified us that each party is responsible for its own loss. We decided to comply; but recently our insurance company notified us that the other party planned to sue them. We had no experiences on this. Any suggestions on what we should/avoid are greatly appreciated. Thank you!

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