Please Explain Lane Splitting

My daughter was taking a left hand turn into a parking lot while all the oncoming traffic was stopped and got hit by a MC lane splitting between the curb and the stopped traffic.
The oncoming traffic left a gap for her to get accross and into the parking lot ( its the law here and there is signage) .
The bike was going fast enough to shift the whole front clip on her BMW ! He flew across the hood and onto the pavement !

Geico said she should have anticipated the event and therefor it was partially her fault ! Guess who he was insured by ??