Yep, she was on the phone - isn't this why cell phones were invented, so we can talk to people while we drive??
I would ream her out if she was the one who hit someone, but she was at a dead stop and got flat out rear-ended. I don't think distraction on her part had anything to do with it.
She's fine and the car seems fine as well. No idea what was up with the other guy...he was explosive and wanted to get the hell out of there. My assumption is no insurance or no license or both, but he did call the police after he left and is apparently going to come by and sign the accident report today - I'm sure they'll want proof of insurance and a driver's license. But on a no-damage accident, who knows how diligent they'll really be about anything.