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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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76.

just sayin    

66.

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!

Posted at 11:31AM on Aug 7th 2009 by TEAMBRANCA
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true but i also don't feel sorry for them beacause they knew what they were getting themselves into when they signed with mj. as someone said they took a gamble and they lost, besides they're already making tons of money on merchandise and rehearsal tapes

1802 days ago
77.

wtf    

HAHAHAHAHA!!!! WHAT A STUPID ARTICLE TMZ!!!

THE DRUGS MJ WAS TAKING ARE N O T ILLEGAL!!!!!

ROFL!

1802 days ago
78.

alreadybad    

ha ha ha, AEG, if you had left the promo at 12 instead of 50..........................................now you get nothing

1802 days ago
79.

opi    

Thanks so much for this. The greedy Jackson clan must be freaking. There goes the MOTIVE to murder, WHICH THEY DIDN'T.

1802 days ago
80.

Della    

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

Posted at 11:11AM on Aug 7th 2009 by Should have married MJ!! His PYT

__________________

Good morning Dear

Will be here later.. i gotta work this morning.. gotta get paid!!!!

1802 days ago
81.

Smooth Criminals    

62. 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. $$$

Posted at 11:29AM on Aug 7th 2009 by Some Faustkateer

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Baloney. Artists Michael's age and older tour all the time. Madonna is one. The Rolling Stones tour all the time and they're in their 60's.

It was 50 concerts over 6 months. That's about 1 1/2 concerts a week. BTW Michael didn't die from doing 50 concerts because he hadn't done any yet. The Jacksons seem to think he was well enough to to a Jackson 5 reunion concert and were pissed off we he backed out on them. The Jacksons tried to muscle in on the AEG concerts with no luck.

1802 days ago
82.

wtf    

HAHAHAHAHA!!!! WHAT A STUPID ARTICLE TMZ!!!

THE DRUGS MJ WAS TAKING ARE N O T ILLEGAL!!!!!

ROFL!

1802 days ago
83.

susan    

7. 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

------------------------------------------
That he only wanted 10 is BS. Watch when the contract comes out. The production costs alone were estimated at $27 million dollars. Doing 10 shows, makes no financial sense and would not make the project viable.

1802 days ago
84.

chicken head    

ha!!!!!!!!! serves you right !! JUNKIE!!!!!!!!!!!

1802 days ago
85.

chicken head    

MJ was a big boy and knew what he was doing STOP BLAMING EVERYONE ELSE BUT HIM!!!!!!!!! PRICK!

======================
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. $$$

Posted at 11:29AM on Aug 7th 2009 by Some Faustkateer

1802 days ago
86.

a total fan    

Somehow this makes me feel better, knowing that some people will not profit from his death.

1802 days ago
87.

Serena Milane    

Maybe we could use his money to really help out some people. The Borgen Project has some good information on the cost of addressing global poverty (borgenproject dot org).
It only takes $30 billion annually to end world hunger!
Yet... we are spending $550 billion annually on the defense budget.

1802 days ago
88.

TEAMBRANCA    



also that story being floated in the tabloids yesterday about MJ waking up and giving himself a lethal shot of demerol

TOTALLY floated by Dr. Murray's defense team....DON'T BELIEVE IT

1802 days ago
89.

MirraSeis    

Now that the Leach, AEG can not get the insurance company to pay, AEG will probably go after Micheal Jackson's estate to pay for their losses.

1802 days ago
90.

wtf    

66.

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!

Posted at 11:31AM on Aug 7th 2009 by TEAMBRANCA

**************************************

THEY MURDERED HIM BY TURNING HIM INTO A MACHINE.. FEN PHEN DURING THE DAY AND PROPOFOL AT NIGHT SO HE WOULDNT STAY UP LATE AND MISS THEIR F.CKING REHEARSALS.
HE NEVER SIGNED TO 50 CONCERTS EITHER. CREEPS.

1802 days ago
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