Racing deaths are not suicide, and the policy in question is not his life insurance - it's the cost to the track and other drivers.
Your life insurance may cover you for a racing death - and that has the following effect on other participants: none whatever.

"No suicide for 2 years" was the rule in life insurance policies for over 100 years. You agreed to it when you paid the premium; no, you can't cross it out and initial it. No one who killed himself with wet ink on the new policy received money.
My source: Metropolitan Life Insurance Company employed my grandfather, my father, and me beginning around 1930. I was employed as a Senior Court Clerk by the Supreme Court of New York County, Civil Term, after that.