Archive for the ‘Policy Exclusions’ Category

Speed Trap

November 15, 2012

Hines v. Camper (Ohio)(Not Published)
(A passenger in a car participating in a street race was injured when the car crashed.  After the insurer of the driver’s car refused to afford coverage, the plaintiff brought an uninsured/underinsured action against it.  The trial court ruled that the policy exclusion relating to racing and speed contests precluded coverage.  The passenger appealed, arguing he was not a “participant,” but  the decision was affirmed on appeal.)

The plaintiff and several of his friends gathered to participate in an amateur street drag race one evening.  Plaintiff sat in the back seat of the car during the race since the front passenger seat did not have a seatbelt.  During the race, the driver of the car lost control and they crashed, with the plaintiff suffering numerous injuries.  Following the incident, the plaintiff sought recovery from the insurance company that insured the parents of the driver.  However, the claim was denied based upon the exclusion that provided that the insurer “will not pay any damages an insured person or an additional insured person is legally entitled to recover because of bodily injury . . . arising out of the participation in a pre-arranged, organized, or spontaneous . . . racing contest . . . speed contest . . .or use of an auto at a track or course designed or used for racing or high performance driving . . . .”

At the trial court level, the defendant insurer’s motion for summary judgment was granted based on both the aforementioned policy exclusion and the plaintiff’s assumption of the risk of injury associated with him entering the vehicle involved in the street race.  The plaintiff appealed, arguing (1) he was not a “participant” in the street race because he was not driving and (2) there was a triable issue of material fact pertaining to his assumption of the risk.

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Coverage Denied for Injury to Motorsports “Participant”

January 19, 2011

T.H.E. Insurance v. Cochran Motor Speedway (Georgia)
(Minor in the pit area of a racetrack deemed to be a participant; insurance coverage denied due to a participant exclusion.)

A stepfather and his minor daughter attended a racing event at the defendant’s racing facility.  The stepfather purchased pit passes for himself and the minor, and he signed a waiver and release from liability and indemnity agreement on their behalf.  The stepfather had some sort of affiliation with one of the racing team’s that happened to be crowned the winner of the local points championship on the evening in question.  The team decided to celebrate the championship by driving the racecar back onto the racetrack to the front straightaway.  The minor daughter was placed on top of the car and it began to drive onto the racetrack.  While it was moving, she fell from the car and was injured.  The minor daughter then filed a lawsuit against the racetrack, its owner, and the driver of the race car to recover for her personal injuries.  The racetrack submitted the claim to its insurance company, which denied coverage and filed a claim for declaratory relief.  Eventually, the plaintiff insurer filed a motion for summary judgment based upon exclusions in the policy, and the Court granted the motion. (more…)

A Bounce in Their Step

July 9, 2007

National Mutual Insurance v. Curtis (Indiana)
(Trampoline Accident Victim Sued Homeowners’ Insurer for Declaratory Relief; Insurer Cited Trampoline Exclusion, But court Found Exclusion to Be Ambiguous; Insurer Owed Duty)

The plaintiff was seriously injured while attending a graduation party at the home of the Curtises. During the party, he was injured while using a trampoline. The plaintiff filed a lawsuit against the Curtises for his injuries, and he later amended the complaint to add National Mutual Insurance Company as a defendant, seeking a declaration that the Curtises’ policy provided liability coverage for his injuries. National Mutual declined coverage, citing a trampoline exclusion found in a supplement attached to the main policy. The lower court granted the plaintiff’s summary judgment, determining that the policy provided coverage, and National Mutual appealed.

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