It seems like the headline is deliberately written to be funny (I did get a good laugh out of it) and the actual event isn't quite as nottheoniony. My understanding is that the court faced the question of whether the lawsuit could proceed against the doctor individually, or against the insurance company. It's bizzare but rather unsurprising and understandable that the lawyers of a doctor faced with such a claim would try, even if it's likely to fail, to have it pushed via the insurance company.

The court made the right decision of course, but this just seems like business as usual for lawsuits.

Yeah but they only did that so the insurance wouldn't have to cover it