Wonderful you and your husband kept cool and did everything by the book. By him putting his phone in your face there is a good possibility he was hoping for a physical reaction from you or your husband. Hard for any husband/father to keep their cool in a scenario like that. I'm sure everything will work out for you in the end because of the way it was handled. Good luck!
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I've spoken to my car rental insurers since, as the guy called them up directly, and not through his insurers. Anyway based on my version of the story, which is fact, they don't think he has a case, and they're going to see what prove he submits to them. They said if he has a strong case and it cost then less than lawyers fees they will pay him, but it won't be my responsibility. I asked my insurer not to pay him a penny! Hope they don't!