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It is hard to tell (unfortunately I cannot tell you with specificity what the opposing side is planning).
This is really a bizzarre case - most insurance carriers would simply send you a check rather than pay for an attorney to appear in court and fight you on a bill with ER and PT invoices (they have taken a very curious course of action).
If they don't pay you, start pursuing the driver directly - remember, ultimately she is responsible. See: http://www.courts.ca.gov/1014.htm