This is one of the best ideas i've ever heard.
On a related note, Ansari X PRIZE (for the first private space flight) was partly funded through a similar deal with an insurance company.
A bunch of crazy dot-coms were also funded with insurance policies, eg. treeloot.com (the infamous punch-the-monkey ads). Berkshire Hathaway annual reports often describe a bunch of them, as they're often the ones underwriting them.
[I then go to google up some statistics...]
http://www.golftournamenthio.com/
Yep. AIG.
If you are trying to hit a ball into a hole at a driving range, the driving range could have either longer grass that slows the ball down quicker or alternatively, it could be on concrete with artificial turf, both of which would make it harder for someone like a PGA professional to find the optimum place to hit the ball.
That being said, it would have been an interesting business prospect to try an arbitrage the contest by buying a large amount of tickets and hiring a PGA pro.
Further, there's a lot of asymmetrical information possibilities. What if a pro golfer (whose odds might be 1:500) decides to show up?