No cover for racing school accident even though exclusion not read by insured (US)

14 March 2018Patrick Bracher, Norton Rose Fulbright
Patrick Bracher from Norton Rose Fulbright.

Patrick Bracher from Norton Rose Fulbright.

Where a motor policy excluded coverage ‘for any vehicle located inside a racing facility for the purpose of … or participating in any driving school, driver training or skills training’ the court refused the insured an indemnity to cover a crash at a motor racecourse skills-training event. The insured crashed while he was instructing a passenger at a driving workshop.

The insured said he did not know about the exclusion because the insurer had not given him a copy of the policy variation in writing and had only sent it electronically. He said he did not open the email.

The court held that the insured’s inability to locate his policy before the event was the result of his own voluntary conduct to which the insurer could not be blamed.

There are no surprises in this outcome.

[The case is Jackson v Esurance, Washington Court of Appeals]

First published by Financial Institutions Legal Snapshot.

Quick Polls


Government has raised the VAT rate. How will this impact short term insurance policies?


There will be a lot of confusion. If a policy is written at 14% and subsequently cancelled (at 15%), how much is the refunded amount?
All will be ok. The industry has had time to prepare for the VAT increase.
Government has really not thought through what the unintended consequences of the increase would be.
AE fanews magazine
FAnews February 2018 EditionGet the latest issue of FAnews

This month's headlines

Viceroy in the purview of the FSB
The fundamental right to work
AI for dummies
‘Day Zero’ the day taps are anticipated to run dry
Pre-existing conditions: insuring the uninsurable
Subscribe now