AEG’s Insurance May Depend On Jackson Drug Use
AEG Live, which was promoting Michael Jackson’s comeback tour, may have to fight for an insurance payout.
[Bauer Griffin Online]
The LA Times reports that AEG took out a $17.5-million policy covering only “losses,” i.e., cancellations or non-appearances by MJ “resulting from accident.” On its face, this language seems to favor a payout for AEG, but there are a few exceptions that may present obstacles.
First, the policy called for a second medical examination just before the July start of the comeback tour. Upon this medical exam, coverage could have been expanded to include shows abandoned by a death from natural causes or by illness. Obviously, that exam didn’t happen.
Second, the policy specifically prohibited a payout if cancellations were related to drug use:
“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….”
Without the toxicology report, the question of drug use remains up in the air. And, even if it shows MJ was using prescription drugs, including Diprivan, there likely will be a battle over whether those drugs constitute “illicit” or “illegal” drug use.
Cue the courtoom battle…
Popsquire will keep you posted!
