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Jackson Insurance Policy

May Be Worthless

8/7/2009 10:48 AM PDT BY TMZ STAFF

Jackson Insurance Policy May Be WorthlessIt looks like the insurance policy taken out on Michael Jackson to cover tens of millions of dollars in losses in the event of the singer's death may be a bust.

The Lloyd's of London policy -- taken out by AEG in case Jackson didn't perform his London concerts -- did not cover death related to illegal drug use. According to the policy, obtained by the L.A. Times, "This insurance does not cover any loss directly or indirectly arising out of, contributed, to, by or resulting from ... the illegal possession or illicit taking of drugs and their effects."

As we first reported, authorities believe the powerful anesthetic Propofol caused Michael Jackson's death. Although the drug is legal, it should never be administered at someone's home, according to all the medical professionals with whom we've spoken. That could constitute an "illicit" use and, depending on how the prescription was written, an illegal use as well.

And, according to the Times, the policy only covered losses as the result of an accident. The only way the policy would have covered death is if a second physical had been performed on Jackson -- and it wasn't. And, even if a second physical was performed, it almost certainly would not cover the circumstances surrounding Jackson's death.

The policy covered $17.5 million. AEG reportedly claims it's in the hole $30 mil.

UPDATE
: Sources familiar with the insurance policy tell us ... if proceeds are recovered they would all go directly to Jackson's estate. We're told Katherine was given a copy of the policy yesterday.

We're also told the physical performed on Michael back in early February in connection with the policy was hand-picked by the insurance company -- not AEG. Our sources say the 4-hour exam -- which was performed in L.A. by Dr. David Slavit -- included blood work. The policy was issued in mid-April.


Michael jackson Launch photos

336 COMMENTS

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1.

SS    

Hey TMZ, you should consult with insurance agents before you write nonsense conclusions based on rumors and assumption. One simple condition for pay out of AD/D insurance type is that death or accident must have been happened at the covered location which was London, country of tour since this types of policies are international not domestic, not Michael's rented house in LA.So, Lloyd would not pay even penny.

1739 days ago
2.

ME    

HAHAHAHAHAHAHAHAHA - the money train stops!!!Junkie

1819 days ago
3.

lawry, from France    

So... i suppose Lloyd's & AEG knew about MJ that he was addict to painkillers & anesthesian, due to his dieseases and insomnia?
And ...

1819 days ago
4.

kitty    

i thought their policy included overdose? now i am confused

harvey help!

1819 days ago
5.

Della    

I wonder if this is why they wanted Kathering to sign a confidentiality agreement?

1819 days ago
6.

questionmarc    

AEG was already in hole for $30 because of MJ, now I guess they'll have to join the list of creditors MJ / and or his family screwed out of money. My best to all those who file lawsuits to collect what little they can of what they lost in their supposrt of MJ.

1819 days ago
7.

who dat    

Insurance policies by their very nature usually have several weasel clauses built into each policy. Then the insurer hires a battery of attorneys to ensure the policies never pay off. That is the way it is done & the reason insurance is such a profitable business. I know several people in the business. When I drink with them, they laugh at how gullible people are in buying insurance.

1819 days ago
8.

Darla    

Haha, That made my day yes stop the greedy from benefitting off a dead man, go Lloyds...go Lloyds...

1819 days ago
9.

just sayin    

tmz firts of all please use a better picture of mj, i'm surethere's thousands out there that you could use
second good because now AEG can't profit from michael's death like they wish they could, forcing him to do 50 when he only wanted to do 10
tmz can you also obtain the contract between mj and AEG because i really want to see it

1819 days ago
10.

iknowiwasthere    

OOPS!!!!!!!

1819 days ago
11.

Sofia    

Nah, I dont believe this story.

1819 days ago
12.

manda038    

Hahaha....No money for the bastards that hired Dr. Murderer Murray....When is the LAPD gonna do their job and arrest these vultures that gave drugs to Michael.....Klein, Murray should be first in line. Klein is trying to get the kids....NOPE...no mo money for you drug pushers!
RIP Michael.....We love you more

1819 days ago
13.

Lori    

I think MJ had a body double take that physical for him. Either that, or he paid off the doctor. How else could he have passed the physical with the only problem being hayfever???

1819 days ago
14.

doc murry    

maybe when aig is done with michael jacksons estate the whole clan plus moon unit..bedsheet and long hair will all be living in a shack like the miley stalker..now that would make me happy as a pig in sh*t..ohhh the humanity

1819 days ago
15.

NO, mememe    

That's what AEG gets, they said he was fit after his physical and they had to have known he wasn't, come on!!!

1819 days ago
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