Being sued after 2 years of car accident?

Cherry

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I rear-ended a woman's car on Feb. 19,2009, and this woman rear-ended another car. It was a minor accident, no damage of my van, and her bump had minor scratch. No police officer was involved, and the lady drove her car to work. I reported to my my insurance company the next day. On Mar. 11, 2011, I got a statement of claim, and this lady is asking for $1 million. What should I do? Can she win?
 
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