Jackson Insurance Policy May Be Worthless
Posted Aug 7th 2009 9:48AM by TMZ Staff
It 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. Jackson Insurance Policy May Be Worthless | TMZ.com