as a former insurance agent, yes, generally speaking the bolded is TRUE. HOWEVER, this can vary from state to state as far as laws go. he needs to stop talking to the other dude's insurance and talk directly to his insurance and bank. Together, or get an attorney involved. Regardless of fault, ALWAYS deal with your insurance and not the other parties. Let the two insurance companies work it out amongst themselves, don't sign a thing until you're satisfied and if you cant get either insurance company to work with you, get an attorney, and I bet you they suddenly start working with you. I don't see how or what the bank manager is going to be able to do. If that doesn't work, file a complaint with your state's COI, insurances don't like the state COIs getting involved, usually ends up costing them more than if they'd just settled in the first place