The short answer is "yes." The longer assessment is a question of where? In a Canadian or a US court. While I cannot speak on the Canadian issue of whether a Canadian court would have jurisdiction, there is no doubt that a US court would have jurisdiction, assuming it is a court in the state you reside in.

The worst case scenario comes if a Canadian court can assert jurisdiction by virtue of what lawyers all a long arm statute, meaning that Canadian jurisdiction can reach its long arm out and have jurisdiction over you for acts committed in Canada. This is the worst because you'd have to deal with the case long distance from you, in Canada. It is usually easier to deal with it from home. You did not say whether you were in Canada at the time of the accident, just that you were "traveling to Canada." To know for sure, you will need to consult a Canadian attorney on jurisdiction issues, but I can say, that yes, you can be sued in Washington.

Also, depending on how much the suit seeks in damages, the suit may be brought in either state or federal court.

Separately, why would your insurance company pay $15,000 in a settlement and not secure a release of further liability between you and the other party? It makes no sense to me. Usually, if there is a payout with money remaining on the policy, the insurance company only settles such cases with an agreement that says each party is hereby released from further liability in the matter. It's just a thought, and maybe you should take a second look at what the insurance company sent you. Maybe they are saying that they offered $15,000 and that there is $185,000 left on the policy, because the way you explained it, does not make sense to me.