Auto Insurance Claims: Auto Accident Claim/Lawsuit Question, bad faith insurance, insurance practices

Question
I was involved in an auto accident back in January in Dupage County in the State of Illinois.  I had full coverage on my vehicle and I believe the other party only had liability.  I slid on ice from the driveway/road into my apartment complex out onto a major road and was "t-boned" by the other vehicle.  My car was considered a "total loss" and my insurance is settling with me for my car.  According to the other party and my company, my insurance company denied his claim because, and this is what my company said to me, "they found I was not totally at fault".  The other party has threatened to sue me and my father (we were both on the loan for my car), but we hadn't heard anything about a lawsuit all these months since January 2008.  Yesterday, I got home and there was a message on my answering machine from a man stating he was at the front of my apartment building and he was trying to give me papers for "the arbitration hearing coming up for my accident back in January".  I have absolutely no clue what he is talking about or who this man was.  I have not been told by anyone that I am being sued, or that a hearing is coming up, etc...  What is he talking about?  And, even though I had full insurance coverage at the time of the accident, will I have to pay this other party because my insurance denied his claim?  I had insurance!  Please help!  I am nervous and scared!

Answer
You need to accept any papers being served and forward them to your insurance company.  They have a legal duty to defend you.  If they fail to do so or denied the claim improperly, then they are liable to you for bad faith insurance practices.  
Burying your head in the sand won't make this go away.