Progressive American Ins. Co. v. Horde

In Progressive American Ins. Co. v. Horde (259 Ga. App 769, 577 N.E. 2d 835 2003, the policy at issue excluded coverage for losses "resulting from any pre-arranged or organized racing, speed or demolition contest, stunting activity, or in practice or preparation for any such contest or activity." The insured in Progressive was an advanced "A" rated driver who crashed his vehicle into a racetrack retaining wall while traveling in excess of 140 miles per hour on the Road Atlanta Racetrack during participation at a three-day racing class sponsored by the Panoz Racing School in which the purpose of such class was to teach students skills necessary to operate a vehicle at certain speeds over a racing circuit. Additionally, the insured in Progressive acknowledged that he modified his vehicle for racing, that he applied for a competition license and obtained a physical examination in support of such application, and that he wished to race competitively in the future. Although the insured in Progressive maintained that the insurer acted in bad faith by denying coverage, the court therein interpreted the contract in its entirety, read such agreement as would the average person, and concluded that the insured was "practicing or preparing for racing activity within the meaning of the policy exclusion at issue prior to and at the time of collision with a fixed object" (id. at 769).