Scratched Their Car And Now Getting Sued For 1 Million Dollars...

My wife scratched a guy's car while parking (literally a scratch, not even a dent!). They guy was inside his parked car waiting for someone. He was not injured. After the incident we exchanged info and we accepted liability for damage to his car. Our insurance covered that.

A few months ago we learned that he is claiming to have bodily injuries and wants 1 million USD. We were told that 99% of these cases never move to trial. So we left it to the insurance company. The insurance company offered about 10,000 USD to settle the case, they declined.

Now the insurance company called me saying that someone has served me court papers. No one served me or my wife anything.

My questions are:

1- the guy did not get hurt. Can he realistically get a judgement for 1 million dollars?

2-my insurance covers the state minimum requirement. If they get a judgement above the insurance limits, can they go after personal assets?

3- can they go after my personal assets, my wife's assest, or both our assets? (my wife was driving, she is a housewife with no income, both our names were on the insurance policy)?

4- can they garnish my wages or go after my retirement accounts?

5- can a court order be appealed if they obtain a judgement against me?

6- I asked my insurance company about the details of bodily injuries they claim. They said they could not share this information with me due to HIPPA violation concerns. I am concerned that the doctors who wrote reports for this guy collude with his lawyers and are writing false statements/reports. Is it true that I am not allowed to get detailed information about the ''injuries''? If I get expert opinion contradicting that of the doctors who are witnessing that he endured bodily injuries (e.g. by re-evaluating the medical imaging), can I sue these doctors/witnesses for malpractice? Can I go after their state medical license?

7- does renters insurance cover this kind of incidents?

Location: Texas

Thanks