Speedy Goliath had a poor driving record and found that insurers were reluctant to insure his automobile. Part of the reason for his high accident rate was the fact that he enjoyed using his automobile in car rally contests. By ignoring the driving rules in the races, he frequently became involved in minor accidents. When he purchased a new sports car, he decided that he might obtain a lower insurance rate if the ownership of the vehicle was placed in his friend’s name. His friend consented to the arrangement, and insurance coverage on the vehicle was arranged. A short time later, while Speedy was driving his friend to work, he carelessly backed up and collided with a parked car. The owner of the parked car demanded damages in the amount of $4,000 for Speedy’s carelessness, but the insurer refused to make payment. The owner of the damaged vehicle brought an action against Speedy as the driver of the automobile, and his friend as its owner. He obtained a judgment against them for $4,000. Discuss the position of Speedy, his friend, and the insurer in this case.