Very possible to have personal injuries at lower speeds. I've never been hit below 45 mph, though, so I can't say it from personal experience.

New research seems to indicate that bracing yourself is better than being hit unexpectedly (according to my chiropractor, at least).

 

Yes, your friend's insurance is being de-frauded. This sounds staged. Sometimes called a "swoop and squat." Sometimes brake lights are de-activated, sometimes the backup lights are de-activated.

 

First thing I thought too. Classic swoop and squat.