going to lose everything?

I was at a friend's house, we were all drinking, all of age. Two guys jumped into a jeep and started doing donuts in the field. It was the passenger's idea and he knew the driver had been drinking. The driver was the owner and his parents own the property. He ended up flipping the vehicle. The ambulance came and took them both to the hospital. The passenger ended up staying there for a week maybe two. I think he had to have surgery on his leg. He's hired a lawyer and I believe is having the driver's insurance company pay for his bills. If the driver was intoxicated can his insurance decide not to pay? If so, can he sue the driver for a large amount, more than his medical expanses? And can he sue the homeowner? He knew the risks when he got into the car, should he get anything at all? The driver is a really great guy who works very hard for the little pay he gets to get by, I'd really hate to see him lose everything he has, same goes for his family.

I seriously doubt the insurance company can back out just because the driver was drunk. If the passenger is not willing to settle for the amount the company doles out, he can sue. The the fact that he suspected the driver was drunk might be of some value because he was not driving the car anywhere, just doing stunts in the property. The lawyer should recommend their client settle in these cases, because even if the awarded an enormous amount that was beyond the limits of what the policy your friend has, what are the chance the passenger will be able to collect any of it (since it seems your friend much if any expendable income).