Krempel v. Noltze

The first issue presented on this appeal is whether defendant insurance company can defeat coverage by asserting the following provision in its insurance contract:

“This policy does not apply: under any of the coverages,

“a. to any automobile

“ (3) while used in a prearranged racing or speed contest; . . .”

For purposes of this appeal it is undisputed that defendant and plaintiff, as a guest in defendant’s automobile, were engaged in a prearranged racing contest on a public highway as distinguished from a drag strip or other private racecourse.

To determine whether the quoted exclusion is lawful,…