Underage Daughter Car Accident and (possibly) pending litigation

My underage daughter got in a car accident and it was her fault. There is no dispute. The other party has retained a local lawyer and we received a certified letter where we were asked to hand it over to our insurance company - hopefully to settle the case.

We aren’t to the lawsuit stage yet and it could take some time to even get to that point. Hopefully the other person settles.

In the event that I am sued (because I am the parent and I owned the vehicle), do I need to report the civil action?

I doubt this would affect my clearance or would it?

It was a situation outside of my control.

Yes, you need to report. No, it likely won’t affect anything.


While the claim process is ongoing or once the lawsuit is initiated by the other party? I assume the latter