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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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46.

Smooth Criminals    

This blows a big hole in Katherine's and Joe's murder conspiracy theory which was stupid to begin with. They are both so transparent. Everything is about money with them. They're still hoping they can cash in on AEG in a wrongful death suit. Katherine wants a third autopsy because she's disappointed that Michael wasn't deliberately murdered.

If feel sorry for Michael, but he was repeatedly warned about how dangerous diprivan is and he wouldn't listen. Murray should get prosecuted though if Michael died from the diprivan and Murray administered it. He had no business caving in to the dangerous demands of his patient.

1905 days ago
47.

Deb    

39. 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

Posted at 10:49AM on Aug 7th 2009 by Agent_C

You are correct when you say the lawyers are going to get rich on this one. However, if propofol is found to be the mechanism of death, there is no provision for it to be used as a sleep aid or other such nonsense, and the insurance company won't have any trouble proving it was illegally used, therefore they will not have to pay out. If however MJ's physicians can show just cause for the use of Demerol or other similar drugs, anti-anxiety agents (Xanax), antidepressants, etc, but no propofol, then that is a different story. Thank God they have team Branca; I doubt Katherine would even know where to start to untangle this mess. She should just keep her hands off the estate, period. I mean, good God, she got 40%!!!!!!!!!!!!!!!!!!!!!

1905 days ago
48.

michellefromAUS    

my comment re #33 was meant to be for # 32 im so sorry nothign to do with anything you said it was the twisted person above you.I apologise in advance

1905 days ago
49.

Lori in Chicago    

"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." What about "illegal administration of a drug"??? Does the policy exclude murder? They should go after Dr. Conrad Murray for manslaughter/homicide. There is no way this family or AIG is going to roll over and accept this from the insurance company. Any insurance company will deny the claim (most people do not know how to fight it). This will be another circus. Makes me appreciate my "simple" quiet life.

1905 days ago
50.

cherryrn    

Now , Katherine Jackson sreaming murder and having a 3rd autopsy makes sense. Maybe policy will pay up that way and why hasn't TMZ talked about a 3rd autopsy that I heard about on another site. Is it true. TMZ. Is it true his brain has been given back to family. What's up.? I count on you to have accurate news up to the minute.

1905 days ago
51.

Babyfacemagee    

I guess all those conspiracy buffs that wanted to believe that AEG was somehow behind Michael's death will have to come up with another theory LOL.

http://www.MichaelJacksonMurderTrial.com

1905 days ago
52.

MJ's PYT    

Good Morning TMZ.Hi Della.
GOOD. FINALLY> Someone wont be getting paid
off my beautiful Mike. Greedy scoundrels.

1905 days ago
53.

blu    

I hope the insurance company get screwed on this one. Michael was being treated by a licensed physician. If the physician was doing something illegal that is on him not Michael. All insurance is the same Health, Life, Home, Auto, ect... they only want the payments. They do everything they can to take our money and never pay out. It's legalized robbery. When an insurance company has to pay what they promised you usually have a fight on your hands. You know they will sue and I hope they win. Propofol is not illegal and it was administered by a physician. They should be forced to pay up!

1905 days ago
54.

Patsyb    

Wonder what AEG will do now, poor Randy Phillips, he of the quote (before MJ's death) "He is going to dance his ass off!.
For all his crocodile tears after Michaels death, too bad !!
I also wonder how MJ passed the physical, but when you listen to the people who knew him well, and saw him in the months leading to his death, they all said he was clean, not on drugs, and was trying to eat healthy..so what went wrong, was the thought of doing FIFTY shows, too terrifying for him? 50 shows for a man half his age would be a lot, but at 50, he must have panicked and wondered if he could possibly pull it off.
I still feel so very sad at the loss of this man, a wonderful, kind, gentle, INNOCENT soul, its heartbreaking that some ordinary everyday people didn't befriend him, and keep him on the right path.
I'm absolutely convinced that Michael was not on strong painkilling drugs untill those final fateful weeks, and Murray and Klein have an awful lot to answer, lets hope they are out away for murder for a very long time !!!

1905 days ago
55.

G    

TOO BAD FOR AEG,hand me a tissue....
That is their fault for the doctors IMHO forging his physical to saying he was in good shape to do 10 no 50 concerts pushing him to the brink like a robot.A man according to the paramedica a man who is 50 yrs old looks like a frail old man passing a physical to do up to 50 dates.Give me a freaking break,they got what they deserved making an 50 yr old man with Lupus and other aliments and a drug addiction passing a physical.
I am glad they are in the hole,they could care less about Michael or they would have saw the results of what real condition he was in and got him some professional help.Greed came back to bite them in the ass..GOOD!!

1905 days ago
56.

susan    

3. i thought their policy included overdose? now i am confused

harvey help!

-------------------------------------------------

That's the problem with all the rumors. Most of them are untrue. The insurance company said from day one they would never issue a policy that covered drug overdose.

1905 days ago
57.

susan    

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

----------------------------------------------

They didn't deem him fit. The doctor that the insurance company hired deemed him fit. And, it has now come out that they wanted another physical when he got to London.

1905 days ago
58.

Smooth Criminals    

It's incredible to me that people believe the greed motivated ramblings of Joe Jackson and Leonard Rowe.

Oh, and let's not forget La Toya who has carted away Michael's music. The Jacksons need to return all the stuff they haul out of Michael's homw hours after he died and return it to the estate.

Stealing from the estate is stealing from Michael's children.

1905 days ago
59.

ambin    

If we had OBAMACARE this fruitcake would still be alive!

1905 days ago
60.

just sayin    


I also wonder how MJ passed the physical, but when you listen to the people who knew him well, and saw him in the months leading to his death, they all said he was clean, not on drugs, and was trying to eat healthy..so what went wrong, was the thought of doing FIFTY shows, too terrifying for him? 50 shows for a man half his age would be a lot, but at 50, he must have panicked and wondered if he could possibly pull it off.

I'm absolutely convinced that Michael was not on strong painkilling drugs untill those final fateful weeks, and Murray and Klein have an awful lot to answer, lets hope they are out away for murder for a very long time !!!

Posted at 11:09AM on Aug 7th 2009 by PatsyB
***********************
you are right michael could not have been fully addicted for 25 years straight, if he was he would have dropped dead a long time ago. i think it was more of an on and off thing and he became hooked in the last months of his life because of the tour. as he had previously stated in an interview that he hated touring because of the sleepless night s he acquired while touring

1905 days ago
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