Auto Insurance Claims: truck hit my house, department of motor vehicles, proper notification

Question
QUESTION: A neighbor blacked out coming down the road and jumped the curb and came through the front door of our house. He has USAA we have Allstate.  This was six months ago.  We ended up having to file a claim on our insurance due to the fact his insurance wanted to get the drivers medical records to see if he had a known condition that could cause him to black out and said it would take awhile and we might want to file on our insurance until they reviewed his records,  if we wanted our house fixed sooner, which of course we did as it had a big hole in it.  We did file it on Allstate and it was handled fast and the house is fixed.  
Today, six months after accident, I receive letter from USAA stating that the driver did not have a known medical condition therefore he was not neligent and therefore they could not pay our claim.  Is this right?  Why should my insurance pay and will my insurance now go after his  
We did have to pay our deductible and would like that back. This sounds crazy to me.
thank you so much

ANSWER: Hi Nancy,
It also sounds crazy to me.  I am not aware of any state that has a law that would allow a driver to escape being at fault in an accident due to pre-existing medical conditions.
Most states have a law that requires the doctor to notify the state department of motor vehicles once a person has been diagnosed with a problem that could cause a black out while driving so the state can get that driver off the road.  If your state has such a law, it's possible that the doctor could also be liable for not making proper notification to the state.
You need to make a copy of the letter and envelope for your records, and then get the original to Allstate.
Allstate also wants their money back.  They will subrogate against USAA for the total amount of the claim (including your deductible) and return your deductible amount to you when they recover.
I hope this information has been of help.
Your feedback by rating my answer will be appreciated.
Sincerely,
Bennie
San Francisco Bay Area

---------- FOLLOW-UP ----------

QUESTION: thanks for your reply.  He did not have a medical condition and that, they say, is why they are not paying.  This sounds more crazy than if he did have a medical condition.  He also hit a street light and street sign which his insurance paid to replace and they fixed his truck ASAP.  If they paid for the street light and street house, what is the difference for fixing my house. oh wait, I know, my house cost $14,000 to get fixed.  
Thanks

Answer
Hi Nancy,
Having a medical problem while driving does not relieve the driver from responsibility.
USAA has a reputation for stalling as long as possible on a pay-out.
I'm sure that Allstate want's their $14,000 back and will initiate all the necessary steps to recover their money and your deductible.
Bennie