Blue Flag (with yellow diagonal stripe), Iracing.com Wiki

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In Auto Racing, the Blue flag with the yellow diagonal stripe means that faster cars are approaching. Commonly referred to as the Courtesy Flag, this flag in real life only applies to NASCAR but is used in iRacing for any racing series. The flag is there to tell backmarkers (slower lapped traffic or slower cars in general) to give way to faster cars. Sometimes when the backmarkers fail to adhere to the courtesy flag, they may get a drive-through penalty. In iRacing, the flag behaves a little bit