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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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61.

billie jean    

Tmz is there no way you can get hold of a copy of this medical Michael was ment to have passed with flying colours i think it would be very intersting to see.

1881 days ago
62.

anniehopper    

If it's true; good. I'm not convinced yet though.

1881 days ago
63.

TEAMBRANCA    

@27. Agree

And How much stress do you not think that ALLGOOD suit and his father and brother's trying to muscle in on the AEG deal caused him. No wonder he couldn't sleep and was stressed....vultures at every turn including his family.

AEG will recoup their investment with the film profits. Lloyds should have to pay something up...make a settlement. You can't just take the money and balk like that...they knew or they should have to make a COMPLETE refund. They picked the Dr. For the exam.


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

Cali MJ Fan - 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?


1881 days ago
64.

janalal4    

If MJ was getting Diprivan it is because he ASKED FOR IT! Just like he did back in the History tour days when he was taking it. Yes, the physician should be prosecuted for administering it, as an M.D. he should have known better & taken better care of his "patient". No ethical physician would do such a thing but I guarantee you that AEG would not have contracted for these shows with MJ had they known he was using Diprivan in an illegal manner like this. And there NO legal means of using Diprivan in a home setting. NONE!!! If Diprivan is found in the tox results then MJ misrepresented himself to AEG. PERIOD. There is no intentional "MURDER" or conspiracy here. Just extremely poor judgement. This is very hard for me to swallow about Michael Jackson. I've loved him since I was a child myself. He was failed by alot of people, including I believe, his own family for not seeing the desperation of his situation but MJ is not blameless here. I don't think the "conspiracy theorists" want to accept how simple, stupid, & absolutely TRAGIC this whole thing is. I know I don't!

1881 days ago
65.

just sayin    

@ me
Posted at 10:56AM on Aug 7th 2009 by me
**************
preach

1881 days ago
66.

Janjan-England    

Why should the Insurance company pay out for something that was NOT ACCIDENTAL. This lovely gentle man was exploited all his life from hangers on wanting his money. It is time that these so called doctors were brought to justice and the results of the autopsy were published so that all Michael's friends and fans can find peace. God bless, you will be sadly missed.

1881 days ago
67.

Some Faustkateer    

Death by illicit drug use is NEVER included in an insurance policy. AEG didn't want the second physical because they knew he wouldn't pass a closer inspection and they needed at least SOME insurance. They gambled on a junkie. They lost.

And I can tell you from experience, 50 shows in 180 days is A LOT!!! You STILL have to rehearse, so you're working more than just your time on stage. That kind of hefty gig would exhaust anyone, let alone an unstable person. What were they (including Michael) thinking? Oh yeah. $$$

1881 days ago
68.

lankandiva    

WTH did my comment go TMZ?ROFLMFAO..suffer AEG,this is the best news i've heard all day so far..R.i.P Michael I LOVE YOU MORE..God Bess your soul..

1881 days ago
69.

TEAMBRANCA    



also...there is no way AEG murdered MJ

he always had rehearsals filmed to review and critique later you csn find past tour rehearsals on you tube very cool too watch!

1881 days ago
70.

FULGY    

Some of the comments I've read regarding MJ on this site are worse than Nancy Grace. .

1881 days ago
71.

MirraSeis    

TMZ, you are the best! Keep reporting. Your sources are better than CNN and MSN

TMZ , YOU ARE ADDICTIVE! I can't stop logging on to your website!

Now Micheal Jackson

Good for AEG, GREEDY ASS LEACHES!!!!!
Get in line like everyone else!

1881 days ago
72.

Miles    

I doubt very seriously that AEG is in the hole on this deal. Count up those tickets again.....tickets sold on a concert thats never going to happen. What those greedy turds get.

1881 days ago
73.

V10    

If it was administer by a doctor even if the drug was illegal due to the terms (of only be used in surgery). a doctor administer it and wouldn't that make it a legal overdose due to the fact that it was prescribed by a doctor even if the doctor prescribed it illegally? wouldn't the doctor be the one performing the illegal act? and if it is, would it be a (legal drug to Michael sense it was prescribed by a doctor) legal drug overdose?

1881 days ago
74.

Joe Smo    

The illegal acts exclusion of coverage clause is standard in all types of insurance policies. It's not unfair or an attempt by the insurance company to scam the insured. You can't break the law and expect the company to pay your benefits.

1881 days ago
75.

cgirl Caron    

Duh

1881 days ago
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