TMZ

Our TV Shows

Got a Tip?

Call TMZ at (888) 847-9869 or Click Here

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

No Avatar
31.

FULGY    

12. Nah, I dont believe this story.

Posted at 10:09AM on Aug 7th 2009 by Sofia
================================

http://www.latimes.com/news/local/la-me-jackson-insurance7-2009aug07,0,5290158.story

1799 days ago
32.

janalal4    

Once again, AEG did NOT "hire" Dr. Murray. MJ came to AEG & insisted he have a personal physician(now it's obvious why he did, right?), MJ insisted that it be Dr. Murray SPECIFICALLY(no surprise there either). AEG did not want to hire a personal physician at all. MJ's argument was(this is a direct quote), "My body is the engine that drives these shows, I need this level of attention.". All promoters like AEG carry insurance policies on the talent, they would be stupid not to. They front all the expenses for the show & from what I've heard, this show was going to be quite a massive event. They usually carry a number of policies, not just one. Let's face it, the talent can be unpredictable at best. This was a risky undertaking for AEG. I find it hard to believe though that considering MJ's history with drug abuse in the past that this would not have been included in their policy. I am as sad as the next fan about the death of MJ but it really would be ashame if AEG is out all this money because MJ misrepresented his health to them I really don't understand how it is that MJ passed a "complete & comprehensive physical" in the first place. So many unanswered questions!!

1799 days ago
33.

Glendetta    

This doesn't make sense. There's a lot of deals that we don't know about that's going on. This is what you call the Michael Jackson Paradox!

1799 days ago
34.

Dr. Jackin DeOff    

It's so sad that this man liked young boys and drugs. I don't know if heaven will have a place for him, and if he ends up in hell he will be able to party non-stop with all the other freaks.

1799 days ago
35.

manda038    

Cool....let Nevada make all the $$$ from millions of fans visiting Neverland in Vegas....Fock Santa Barbara....Fans should have a place to visit Michael's grave...tons of money to be made on that one

1799 days ago
36.

michellefromAUS    

HAHAHAHAHAHAHAH suffer your greedy sons of lying bitches! that idiot producer standing there talking like he was Mjs best friend after his death yet he helped drive him to it by tricking him in to 50 shows,NOBODY could do 50 shows!
YOU GET WHAT YOU GIVE JERKOFF! and you guys just got it!!!!!

1799 days ago
37.

Cynthia J.    

It's just like any insurance scam. They'll find any way to reject a paid for claim. Michael was under the care of a M.D. Yeah, maybe he was a prescription drug addict but his Policy should be upheld. Those thieving Insurance companies will try and deprive any claim. It makes me sick. What a Country!

1799 days ago
38.

Sandra    

MJ is not even buried!!!
Come on please!

1799 days ago
39.

Agent_C    

Not soi fast.. A case could very well be made that these drugs were used legally. He did, after all, have a doctor administer and procure them?

Sounds like a few lawyers are going to get rich(er) on this one!


A_C

1799 days ago
40.

LoveHimMore    

MJ was NOT a drug addict. Don't be so gullible. The media lies constantly. Nurse Cherylin Lee and Dr. Klein both drew MJ's blood and said there was no sign of addiction and no needle marks. Other's who said they never saw any sign of drug addiction are chef Kai Chase, personal trainer Lou Ferrigno, manager Frank Dileo, attorney Tom Mesereau, body guard Miko Brando, Jermaine, Tito, Joe Jackson. MJ passed his insurance physical in February, which means they found no sign of drug addiction.

The drug addiction lie started the day MJ died when atty Brain Oxman jumped on TV and lied about being the Jackson Family Spokesman, even though MJ had fired him in 2005 and then Brian Oxman sued MJ and lost. Oxman couldn't even tell the News if MJ was dead or alive, even though he falsely claimed he was with the family in the hospital. The drug addiction story is a mob cover up for conspiracy to murder MJ. Organized crime controls what's printed in the media, that's why they'be been using it to destroy MJ for years. MJ said their was a conspiracy against him many times, and he told people close to him that he feared they would kill him.

1799 days ago
41.

michellefromAUS    

re comment #33 sounds like your having a sick twisted fantasy there or are totally deluded! MICHAEL JACKSON was and is INNOCENT! dont be so frigging pathetic you low life for one you dont speak like that about someone thats deceased,2,if you met MJ in the street you'd be trying to kiss his arse like everyone else did,and 3 YOU WERE NEVER THERE YOU CLEARY HATE THE MAN AND THEREFORE ARE BIASED TOWARDS HIM! he was innocent!if your kid was molested by Mj wouoldnt you go ahead have him charged and still sue him for the money?>YES YOU WOULD BUT THEY DIDNT COS THAT LYING LITTLE BASTARD JORDAN CHANDLER WOULDNT HAVE HELD HIS STORY TOGETHER AND THEY KNEW IT SO THEY TOOK THE MONEY AND RAN! and they didnt have to@ they couldve done both!l leave MJ alone seriously he suffered enough because of people like YOU

1799 days ago
42.

Sandra    

Sorry for al the money wolves.
They will have to wait,they will back to close.

1799 days ago
43.

Deb    

I have said all along that the insurance company would not cover an accidental overdose, and no one believed me, they just kept circulating their stories about the big insurance payout. I am happy to say I feel vindicated now.

1799 days ago
44.

KT    

GOOD!

R.I.P Michael, love you and thank you TMZ for keeping the updates on MJ as it's the 5th week now and I want to just know what happened so I can move on from all of this.

1799 days ago
45.

me    

GREAT!! These vultures knew MJ was sick and they were going to exploit the hell out of him for profit. Now they will get nada? MJ estate is worth nearly 1billion bucks as well speak, after the $400 kmillion is left that leaves $600million. learn to add and subject fools!! And now the sony atv , his catalog ( which he owned, duhhh), plus Eminem's catalog ( that he bought on the sscret tip last year) plus the part ownership of Neverland ( did ya know he was still a co-owner with Tom Barrack..lmao). and AEG will get nada. Can't sue a man for dying idiots, it's not MJ canceled or backed out of the concerts...he died. And Debbie and Klein will get nothing either. Debbie got her lil sorry spousal support to keep getting fat and obese off of. they are all so stupid. Mike may have had a drug issue he couldn't kick, but that man knew his business. he spent up his cash, but he didn't care cuz he knew what his assets alive were and I now he looked at Elvis's and Marilyn Monroe's estates and KNEW beyond a shadow of a doubt that his would grow to be even more than theirs. His only concern was his MOM and CHILDREN as his will clearly proves. All the rest of these fools, can go fester in their own bile for all the BS they put this man through. He was just too damn good to stay here any longer, so Jesus called him home. All of you "child molester" name callers, get over it. "not guilty" was the verdict called out about 10 times, by a jury the heard the REAL evidence,not tabloid jargon. What a bunch of airheads you all are, probably never heard his side of the story or investigated it for your damn selfs, lonely asses who hate a man, yet up in boards about him all day tallking mad crap. I am so amused by you all, because no matter what you say, it is what it is! None of these fools will get a dime. hilarious. And MJ is at peace for once!!!

1799 days ago
Previous 15 Comments | 1 | 2 | 3 | 4 | 5 | 6 | 7 | Most Recent | Next 15 Comments

Around The Web