Detroit Automobile Inter-Insurance Exchange v. Bishop

The plaintiff, an automobile liability insurer, seeks a declaratory judgment that its insured is not covered for a particular loss. It appeals from a judgment declaring that under the terms of the policy and on the facts presented the loss is covered.

The question concerns the applicability of a policy provision excluding liability as to “any automobile while operated in any pre-arranged race or speed contest.”

The defendant’s son, age 17, was driving the insured vehicle with his father’s permission. Shortly before the accident the son wagered $3 with two other young men that from a standing…