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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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16.

manda038    

Michaels estate is worth billions of future sales....the only one living in a shack will be his drug pusher docs AFTER the serve jail time for prescribing drugs to an addict.....sorry to burst your bubble haters.....MJ's kids will get plenty of $$$$$$$

1818 days ago
17.

just sayin    

13. 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

Posted at 10:10AM on Aug 7th 2009 by Manda038
**************************
i don't think the LAPD want to arrest this doctor because they are taking far too long, so is the autopsy results in fact i'm getting bored waiting for it and i'm starting to lose interest. they need to stop dragging this case out and hurry up and be done with it already jheeze talk about creating a circus

1818 days ago
18.

angles    

don't lawyer OF MICHAEL JACKSON LOOK OVER THES THINGS THIS GOES TO PROVE MICHAEL HAD NO INTENTSIONS OF DIEING HE HAD A FAMILY TO TAKE CARE AND HE LOVED HIS CHILDREN SO THE PLOTT THICKINS NOW THEY WILL LOOK AT HOW MICHAEL DIED WHY WOULD A DR. LEAVE HIM ALONE WHILE GIVING HIM A DRUG LIKE THAT THIS IS NOT RIGHT HIS MOTHER IS RIGHT AND IF HE THE DR USE HIS OWN PHONE IN MICHAELS HOME WHY DIDN'T HE CALL 911 RIGHT AWAY I THINK HE DIED AND LEFT HIM LAYING THERE THINKING WHAT TO DO NEXT ANY DR. WOULD HAVE ACTED RIGHT AWAY SOME THING ISN'T RIGHT THE AMBULEANCE DID NOT HAVE IT'S LIGHTS ON AND THAT TELLS ME HE WAS ALREADY DEAD . THEY DIDN'T MOVE VERY FAST DID THEY SO TIS SOUNDS STRANGE

1818 days ago
19.

doc murry    

why is he smiling in the picture if he is dead..im confused bec ause it looks like its taken after he is dead

1818 days ago
20.

Nicole    

These people were looking at money first and not even looking at MJ as a human being. They were looking at MJ as a race horse. Please sign the Nobel Peace Prize for Michael Jackson Petition. Google it.

1818 days ago
21.

sue    

well i for one wondered about the ins pol having a od clause in it at all who does that???especially on a celeb...i hope aeg eats there words and they deserve what they get A BIG FAT NOTHING!!!!they knew mj was not in shape to do 50 shows but all they saw was the almighty dollar, along with the phony doc they were supposed to pay for also...i am sure the physical was not done in detail and they just listed things that not have even been done , to pacify london or whomever they needed to ...WHAT GOES AROUND COMES AROUND!!!now aeg will get theres !!! NOTHING!!!!another example of taking advantage of mj and his monies, so mj can rest assured for all those who made him suffer and didnt want to help him to recover from the addiction can be left with nothing but the guilt of living with the realization of letting another human being die way before his time because they didnt care enough for him..they only saw wht they could get out of it..nothing more...we love you mj and pray for you RIP MJ ---SUE FROM TAMPA.

1818 days ago
22.

Daddy wants some of the pie too.    

So much for the "They murdered him for the insurance money" theory unless they didn't read the fine print first.

1818 days ago
23.

Marla    

The next dead body LAPD will find is Dr Murray's!!! Cause AEG will go after him now for killing their meal ticket!!!

1818 days ago
24.

Pat    

YEA!!!!!!!

This has all been fishy from day one. I am so glad the insurance policy will not be paid. I hope it also comes out who conducted the physical exam on MJ since he would have had these drugs in his system if he was an addict. I hope LOL will pursue looking into the samples submitted when the application for insurance was made.

RIP MJ...we all miss you.

1818 days ago
25.

Melanie    

@ Comment #18--that was one of the worst, most poorly written articles I have ever suffered through!

Michael's children will be just fine, assuming this story is even true. If not, AEG gets a stake in the merchandise sales, as per the agreement reached earlier this week. The also have reached an agreement in which they may market the footage of the tour rehearsals and the like. The sales of his merchandise has skyrocketed. The footage of the tour rehearsals will also do very well. They'll get their money too.

You know, you can dislike a person (though it boggles the mind as to why you would continually read and take the time out of what is, I'm sure, quite a productive day (*insert sarcasm here*) to read and comment on articles about that person), but to wish ill on that person's children is, among other things, childish, immature, and just disgusting. You must be so proud.

1818 days ago
26.

truthserum    

My mother tried to collect on a policy from American Family when my father passed. The insurance company refused to pay until 2 autopsies showed my father died of heart failure. They also insisted she have a psychological evaluation and submit to a polygraph. Only when she lawyered-up did they pay!

1818 days ago
27.

SuzyCreamCheese    

An insurance company taking payments and not paying out, shocking!!!! NOT!!!

1818 days ago
28.

Cali MJ Fan    

Ahhh, so THIS is why AEG stepped up before the last hearing and wanted in. NOW we know.

Team Brance and AEG will most certainly try to recover funds to AEG without a very costly lawsuit on both parties parts-- especially since a**hole McBillions now can see a copy of the contract. (That makes 3 parties now).

What do you wanna bet that this information was released as a 'warning shot' to McBillions... back off and let Team Branca do their thing-- or we might just come after the estate (meaning Mrs. Jackson's portion) for more money?

Any takers?

1818 days ago
29.

litzie    

Lloy'd of London hasn't become profitable because they're gullible or naive. They were no doubt aware that Michael Jackson had addiction issues and refused to issue a policy on him covering a potential overdose.


Too bad for all those hoping to cash in on his death...maybe his family, friends, doctors and/or managers should have tried harder to straighten him out.

1818 days ago
30.

liz    

It was Michael who demanded to have Dr. Murray. AEG absolutely did not want to pay the $150,000 monthly salary to have him travel as MJ's personal physician.

On the news, I just heard they might move Neverland to Las Vegas and create a museum, and amusement park where Michael will be buried, and open to the public for his fans to visit.

1818 days ago
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