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I appreciate all the input from everyone.
I'll suggest to her she might want to run the issue by her attorney just for some basic advice. Whether she has a case worth pursuing I'd leave to the lawyer to ascertain.
Insurance companies have deep pockets to fund legal defenses and its unlikely she could financially sustain any sort of legal attack anyway.
If I were her, I'd be tempted to contact Consumer and Corporate Affairs and talk with someone in that gov't department. They may also have some useful advice to offer.
I brought this to GFY hoping someone else had encountered a similiar situation and to hear how they handled it.
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