Not true. I know of lots of people that have had no insurance and been well off. Its usually a choice not to get it, but there are times it can lapse.
Depends on the state I guess... Since it was a chain reaction accident, the PD could have filed the accident with the rear car driver being at fault, meaning the damages were all on him. A guy I know hit a car, then after he hit it, he got hit, and it was the guy in the rear's fault for both vehicles.