being sued for accident that wasn't my fault

What is the name of your state? MA

I was involved in an auto accident a few years ago which I had forgotten about until I recently received notification that the other driver is sueing me for $130,000 for medical expenses, pain and suffering. As I recall the other driver ran a red light and was at fault. Furthermore, after the accident the other driver got out of his car and was walking around fine. In fact, I was taken away in an ambulance, not the other driver. I do not recall the exact details of the police report, but I know I was not at fault, as there are no points on my licence for the accident. I have turned the lawsuit over to my insurance company, however at the time I only had $50,000 injury liability. My insurance company said they would offer $50,000 and if the other driver doesn't accept, the case will go to court. I do not see how I could be liable for another driver running a red light and hitting me, however the fact that an attorney has agreed to take his case and that my insurance company said they will offer $50,000 makes me worry that I could somehow be liable.. Is this true? Why would my insurance company offer to settle when the accident was not my fault? And what would happen if the case does go to court and I am ruled liable? Thank you,

Get a copy of the police report. Your insurance company would not be offering to pay a dime, unless they determined you to be at fault.

Typically the insurance company will either pay for an atty to defend you, or settle the case, whichever is more cost-effective. If they settle, it will not be an admission of liability. But, you should go over all this in detail with them.