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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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91.

TEAMBRANCA    

81.. i agree with you completely they knew they were taking a risk with MJ and their risk will pay off but probably not the 500million they would have got from extending the concerts or launching a worldwide tour. They have and will continue to recoup their investment but frankly it was a business thing... they'll be fine and are fine but they are NOT murderers. HURRY UP and indight Murray already. Also daddy joe contributed more to MJ's death than AEG in my book. Continued emotional harrassment.... pooor MJ.

unlike Madonna and Mick Jagger...MJ was not in tip top shape strengthwise
not an avid yoga fanatic or runner
he had become almost emaciated and anorexic maybe if he had had two years to get ready he could have gotten mentally and physically strong enough and it wouldn't have stressed him out so much. I do think he was excited to perform again and that the fans were excitedly awaiting him :) Hope that made him happy.

1912 days ago
92.

Michelle    

LIfe is all about the choices we make along the road of life. MJ chose to take drugs, do plastic surgery, pay women to have babies for him, he chose to sign up for 50 concerts in London, chose to overspend, chose to live a mysterious life and now this death is a mystery.......and in the end, the choice to do propofol led to his death. The drugs are not illegal but the method in which they were admiinistered was illegal. Should never been given outside of a in patient or out patient facility with proper heart monitoring and breathing equipment......If anyone had resources to get himself help in every appropriate way, it was MJ. He chose a highly inappropriate way of dealing with stress and he died. Maybe there can be a lesson learned from his demise. Get proper treatment when one is depressed, anxious, etc.

1912 days ago
93.

Smooth Criminals    

85. AEG just sold the rights to the footage of the rehearsal for 60 million. Also, people have not been demanding refunds for the concerts since their tickets are now worth something so they barely lost any money on the concerts. Also they have a right to a percentage of the profits of the "This is It" merchandise and movie ticket sales. AEG is not in any hole. They are making plenty of money of Michael's legacy.

Posted at 11:44AM on Aug 7th 2009 by Tamara Cannon

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

Do your math. Of that $60 million the estate gets 90% and AEG gets 10% which is $54 million for the estate and $6 million for AEG. AEG had already spent $30 million. AEG will be lucky if it winds up breaking even when it's all over.

The ones who are profiting most from Michael's death are the Jacksons. Not only Katherine but also Joe, Jermine, La Toya, and Tito who are selling interviews and pictures to the foreign press for hundreds of thousands. Money that they would have never seen had Michael not have died.

1912 days ago
94.

Lori    

Can we say "SMOKING GUN" this is motive. Michael Jackson was worth more dead than alive to AEG.

1912 days ago
95.

wtf    

97. 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.

Posted at 11:57AM on Aug 7th 2009 by MirraSeis

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

They CAN idiot. None of these drugs MJ was using are ILLEGAL. These are prescription medications not street drugs! Propofol is not illegal as well!

1912 days ago
96.

Michelle    

The highlight of his career was the Thriller, Bad, etc. years....that was in the early to mid 80's. He lived in the middle east and Ireland for the past couple years before returning to Las Vegas and then Los Angeles. If he couldn't cope with the business, he could have gotten out of showbiz. He could have moved to some isolated place like many other celebrities have done.



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.


Posted at 12:00PM on Aug 7th 2009 by dnc

1912 days ago
97.

shirleyfeeney    

It's not like MJ administered it himself. Any doctor worth his MALPRACTICE INSURANCE would have said "no way". But since the doctor gave it to him, that's HIS responsibility. And from what you've reported here at TMZ, the doctor appears to have fallen asleep while he should have been monitoring his patient.

Sounds like a crock to me.

1912 days ago
98.

HumanNature    

10 SHOWS THEN 50 SHOWS = $0 !!!!!!!! AEG GREEDY BASTARDS!!!! LOL!!!!

1912 days ago
99.

Victoria    

If it is eventually determined to be manslaughter.....will Lloyds THEN pay up?

1912 days ago
100.

R    

AEG is being so greedy or cheap. MJ was overdosed by a doctor and the nurse. Those drugs are legal! AEG is being silly.

Of course, they probably drafted up that rules after he died to avoid payments. All insurance companies are like that and they will LOOK FOR LOOPHOLES to avoid paying up.

1912 days ago
101.

MJ's PYT    

OK I just wrote a detailed book and tmz erased ity. The always do this and I'm fed up.
So again Dr.David Slavit passed MJ for concerts. HE's a ENT out of NY. Probably did not do
full body. NEverland in Vegas I'm all for. Lots of money to make.
Rumor has it Mj had several drugs in his system maybe thats why Katherine wants 3rd autopsy.
also the way shes going on about he was too young to die of natural causes leads me to believe
that maybe this was stated.
Dr.Murray I have a feeling because he feels he clear will try to get his 300,000 from MJ estate.
Latoya should return all Mj 's music, art work, and personal affects she took. This chick. WOW. look
up leech in the dictionary and her pic is there. I'm sure she gave MJ private hm videos and deathbed
photos to tabloids.
Jermaine will be on Larry King tonite NO doubt promoting his version of "SMILE". Lets just make sure
MJ estate gets its share . And maybe the Korean papers can grab that lil check. gO TEAM BRANCA.
Keep doin what you do.

1912 days ago
102.

Tricia Devine    

. . .and what about all those contracts, WILL, etc., signed while under the influence!!! How legal are they?????

1912 days ago
103.

FULGY    

MJ is the only one to blame. He was a hard core junkie.

1912 days ago
104.

Cassy    

This makes sense. Why would someone insure a drug addict against accidental overdose? Not unless he was in a mental health clinic under 24/7 guard. And even then the premiums would be sky high. Hopefully AEG had a really good contract with Dr. Murray and can sue him for what little he has. AEG, find the pharmacy who dispensed this drug. Now that's a deep pocket.

1912 days ago
105.

Michael Jackson's Voice    

So I guess if there was a conspiricy to kill the guy to make bank off of him.... that theory just fell threw the cracks... HA HA Ha AEG YOU LOSE!!! Mike did get revenge for all the B.S. you all put him threw in the end after all...... LOSERS!!!

1912 days ago
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