Open Question: Best course of action to take with Ins. company ?

This may take awhile, so get a cup of tea. :) On June 14, 2009 my mother and father were hit head on by a negligent driver. CHP ruled that the other driver was at fault. There were a total of four people injured. My mother, referred to as Jane, was injured seriously and remained in a coma for 46 days in ICU. Jane then spent a total of 9 months in hospital care. Jane's medical bills were abt. $1M. Jane could not afford these bills and was eligible for State insurance (Medi-Cal aka Medicaid). Jane suffered a broken neck, broken (L) femur, shattered (R) ankle and (R) calcaneus, all ribs were broken, diaphragm ruptured, and suffered a stroke leaving per partially paralyzed on her left side. In addition to these physical injuries Jane has also suffered many mental setbacks. Due to the stroke Jane's mental status has been reduced greatly. While she can still function she has a hard time understanding and coping with things. The at fault's insurance (Geico) has offered to pay the total policy limits of $100,000.00 to all four of the people that were injured in the accident. Each of the four injured people must sign a release waiving all future claims against the person who caused the accident. If all four people do not sign, the insurance company has not protected its insured and therefore will not pay out the money. Jane's insurance company (AAA) has offered to pay Jane $100,000.00 less the amount received from Geico. This would mean, $25k from Geico, $75K from AAA. For a total of $100k. Minus medical liens and atty fees. Bringing Jane's total ins. settlement to about $40k. Jane can no longer work, use the restroom unattended, fix her own meals, shower herself, or anything of that nature. IMO, $40k does not cover the damage done to Jane. Should Jane not settle and instead sue Geico/The person who caused the accident for XXX amount of dollars for pain/suffering, mental distress/anguish, and money to care for Jane for X number of years ????