AEG drops Michael Jackson insurance claim

[shelly_webster]

Los Angeles (CNN) -- AEG dropped its claim Monday for a $17.5 million insurance policy for Michael Jackson, just days after e-mails revealed the concert promoter had doubts about Jackson's health at the time they were applying for the insurance.

A Lloyds of London underwriter sued AEG and Michael Jackson LLC after Jackson's death, claiming they failed to disclose information about the pop star's health and drug use.

"In exchange for AEG withdrawing its insurance claim, underwriters agreed to dismiss AEG from the case and to waive any costs recoverable from AEG," said Paul Schrieffer, attorney for the insurance underwriter. "The insurance case continues against the Michael Jackson Company LLC for, among other things, rescission of the policy due to nondisclosures of Michael Jackson's prior drug use."

Lawyers for AEG and the Michael Jackson estate, which controls Michael Jackson LLC, did not immediately respond to CNN's request for comment Monday.

Jackson died of an overdose of a surgical anesthesia in combination with sedatives on June 25, 2009, according the the Los Angeles County coroner. Dr. Conrad Murray was found guilty last year of involuntary manslaughter in Jackson's death.

A controversy over the insurance claim erupted last week after the Los Angeles Times published e-mails which the insurance lawyer said had not been provided to him despite a year of discovery in the case.


http://edition.cnn.com/2012/09/10/showbiz/michael-jackson-insurance/index.html

 

[elusive moonwalker]

I thought aeg had passed the insurance over to the estate anyway. so they werent making money from it. so no need to be part of the suit anyway?

 

[Nathy MJ]

Now the Jacksons will say how powerful they are and how they scared AEG with the emails leaked, that they even dropped their claim against the insurance company.

 

[marebear]

I would worry if I were the Jacksons. Now AEG will focus all their attention on them.

 

[pug]

AEG and Dr Murray did not supply Lloyds with the medical records they demanded so I can see why AEG could not win against them. I don't understand why the Estate has not dropped it's claim against the insurance company, maybe they will later.

 

[ivy]

Now the Jacksons will say how powerful they are and how they scared AEG with the emails leaked, that they even dropped their claim against the insurance company.

Lloyds - AEG . I personally think the leaked emails had nothing to do with AEG dropping their claims. I'll explain why.

On June 4 AEG wrote in answer to interrogatories they had no damages to recover. Late June Lloyds filed a motion to dismiss AEG's claims

A hearing was set for THIS Wednesday. AEG hadn't filed a response. So even if they didn't withdraw the judge would have dismissed it shortly

That leaves MJ Co trying to recover what they paid to AEG. Knowing how MJ Estate operates they are probably negotiating a settlement.

Almost all lawsuits Estate involved in ends with settlement (HTWF, Mann, John Landis, Ola Ray, Lapointe and so on)

 

[Vici]

why did they sue the estate too? was it cus they had already handed over the insurance money and now want it back?

cant remember.

 

[loveforever]

So now it's the estate Alone vs the insurance company? AEG wants no part in it because they have nothing to gain and they have passed the insurance policy to the estate already. I read the time this lawsuit filed the estate was supposed to get this 17.5 million and the estate lawyer commented the lawsuit nothing but the insurance company tried to avoid paying.

 

[ivy]

I believe Estate had a life insurance policy that's different.

This is a cancellation policy.

 

[Tygger]

Pls clarify, thank you. Trying to understand.

AEG transferred their accident policy to the Estate? This is not the same as a life insurance policy. This is a cancellation of shows policy. Still illegal.

Are you saying the Estate had their own policy separate and apart from the AEG show cancellation policy with Lloyds?

Also, did someone say before if MJ had a life insurance policy on his own worth ONLY $3M? For a billionaire, doesn't make sense.

 

[walkingonthemoon]

why did they sue the estate too? was it cus they had already handed over the insurance money and now want it back?

cant remember.

They did not sue the estate tecnically, it was AEG and the MJ Company, because those two were the policy holders.

 

[elusive moonwalker]

From my understanding aeg had a cancellation policy. after june 09 the estate were given this policy by aeg and the estate tried to claim on it. Llyods are refusing to pay one cause u cant transfer the policy to another and two cause of none declaration. So after transfering the policy to the estate aeg werent involved anyway so this is kinda part of the process and has nothing to do with the emails imo

mjs own life insurance is totally seperate and has nothing to do with this

 

[Petrarose]

Now the LLc company and Lloyds are still involved in this case. I wonder if Lloyds are refering to the prof drug use, the drug use in the 90s, or drugs used for legit treatment. If the estate settle, I hope they get some money at least. Typical how this reporter linked the email with the AEG decision.

How does this thread get higher up on the list of threads? It is so far at the bottom that I missed it.

 

[jrsfan]

Pls clarify, thank you. Trying to understand.

AEG transferred their accident policy to the Estate? This is not the same as a life insurance policy. This is a cancellation of shows policy. Still illegal.

Are you saying the Estate had their own policy separate and apart from the AEG show cancellation policy with Lloyds?

Also, did someone say before if MJ had a life insurance policy on his own worth ONLY $3M? For a billionaire, doesn't make sense.

The policy was cashed out so that would be the amount Jackson paid into the policy plus interest- policy was for $20 million- that is how I understand it:

http://www.hollyscoop.com/michael-jackson/michael-jacksons-life-insurance-to-pay-out-3-million.html

[h=1]Michael Jackson's Life Insurance to Pay Out $3 Million[/h]
August 8, 2009 by: ANI ESMAILIAN

<center>

</center>

Share
--


0



​

​

Michael Jackson's life insurance company has agreed to pay his estate $3 million dollars.

John Branca and John McClain, who are the temporary administrators of Jackson's will, are said to have cashed in the contract, winning $3 million for the Michael's estate.

Initial reports indicated Jackson's policy was worth up to $20 million, but according to TMZ, Branca and McClain were in a rush to finalize the deal, so they settled for just $3 million.

They were in a rush to settle because they were reportedly worried that the insurance company would refuse to pay anything if an autopsy report determined drugs were the cause of death.

And it sounds like they settled just in time. On Friday new toxicology reports surfaced and according to multiple law enforcement sources, Propofol wasn’t the only drug found in Michael Jackson’s system at the time of his death.

The report indicted that alprazolam, which is better known as Xanax, was also found. This drug is commonly used to treat patients with anxiety.

But it’s still believed that Propofol, according to a source, the "front and center in terms of why [Jackson] died."

In related news, if it is eventually concluded that drugs were in fact the cause of Michael’s death, it may mean bad news for AEG as drugs were not covered in the life insurance policy.

They took out a $17.5 million life insurance policy with Lloyd’s of London on Michael Jackson for his London comeback. His estate would only get a payout if his death was deemed "accidental." So it sounds like Branca and McClain settled his personal life insurance policy just in the nick of time!
Read More about:

 

[Bubs]

I have no comment for the article itself but I have to comment on the state of the media today.
CNN posted that article on Monday and it was the only one nearly two day after being release. Once TMZ posts the same story with their own spin, other mediums picks up the story. WTH! Even Reuters and BBC, both of which I have held high regards reporting the news and now even they jumped on the bandwagon: check TMZ and copy news from there! In few years time we read copy paste garbage from everywhere?

Rant over.

 

[AliCat]

Here's another article that simplifies things:


AEG ends legal dispute with Lloyds over This Is It policy

Live music major AEG Live has dropped its $17.5 million insurance claim against Lloyds Of London with regard to Michael Jackson’s fated ‘This Is It’ residency in 2009.

After Jackson’s untimely death that year, AEG tried to claim compensation from Lloyds, which had insured part of the planned 50 night O2 extravaganza. But the insurers claimed that the live firm had misrepresented the state of Jackson’s health when taking out its insurance policy, and sued through the US courts in a bid to have the policy declared void.

According to CNN, AEG confirmed yesterday that it had now agreed with Lloyds to withdraw its insurance claim, and as a result the insurer will have the promoter removed from its lawsuit. Michael Jackson LLC, which is now controlled by the Michael Jackson estate, was also named on that lawsuit, as it too was making a claim against the same insurance policy, and for the time being that part of the litigation will continue.

The deal between AEG Live and Lloyds comes a week after embarrassing emails between executives at the live company, and individuals involved in the ‘This Is It’ venture, were published in the LA Times, showing that there were widespread concerns about Jackson’s physical and mental wellbeing as the show went into rehearsal, and before, which ran contrary to AEG’s official line at the time.

When said emails first emerged, it was thought they had originated in evidence amassed as part of the Lloyds v AEG case. Though we now know they were provided to the LA Times by Howard Mann, an associate of the Jackson family, leading to allegations that the Jacksons themselves were involved in the leak, and that the emails came from evidence due to be used in a different legal dispute between Michael’s mother Katherine Jackson and AEG. The Jacksons deny those claims.

Either way, at a first glance, the emails did seem to suggest that AEG execs had hidden big concerns about Jackson’s health from public view, which might back up Lloyds’ claims that it too had been misled (though obviously, without seeing the actual terms and correspondence between AEG and Lloyds, that’s hard to know).

Either way, AEG’s legal rep insists that talks to end the company’s dispute with Lloyds had been ongoing for months prior to the LA Times report, and that the leaked emails had nothing to do with the subsequent agreement between the two companies.

Meanwhile Paul Schrieffer, a lawyer working for the insurer, confirmed an agreement had been reached, telling reporters: “In exchange for AEG withdrawing its insurance claim, underwriters agreed to dismiss AEG from the [lawsuit] and to waive any costs recoverable from AEG. The insurance case continues against the Michael Jackson Company LLC for, among other things, rescission of the policy due to nondisclosures of Michael Jackson’s prior drug use”.
http://www.thecmuwebsite.com/article/aeg-ends-legal-dispute-with-lloyds-over-this-is-it-policy/

$17.5 million is a lot of money to pay out for an Insurance Company!

 

[jaydom7]

I wish someone would've been looking out for MJ.. He was coming and going to Klein's office in addition to Murray injecting him with God knows what nightly.. I am surprised he was able to rehearse at all.. Both Klein and Murray need to be jailed. Neither one cared about MJ just his money.

 

[ivy]

Pls clarify, thank you. Trying to understand.

AEG transferred their accident policy to the Estate? This is not the same as a life insurance policy. This is a cancellation of shows policy. Still illegal.

Are you saying the Estate had their own policy separate and apart from the AEG show cancellation policy with Lloyds?

Also, did someone say before if MJ had a life insurance policy on his own worth ONLY $3M? For a billionaire, doesn't make sense.

AEG and MJJ Company were the parties of the cancellation policy with Llloyds. MJJ Company is now run by MJ Estate.

The $3 Million life insurance policy was separate from the above.

 

[Petrarose]

The best explanation of the e-mail situation and AEG dropping the case is found in the response by the AEG lawyer Putnam, found in the AEG e-mail thread. All these other reporter reports above ^^ do not tell the full picture.

 

[AliCat]

Dr. Christopher Rogers, the coroner who conducted Michael Jackson’s autopsy, testified that Jackson seemed to be in better shape than most men his age. Michael didn't have any signs of arteriosclerosis, which is unusual for a man of age 50 years. Usually by the time you are 50, you show signs of having arteriosclerosis and Michael didn't have any. His heart was so strong, so Lloyd's of London was not deceived!


[video=youtube;6JhoFf67OrA]http://www.youtube.com/watch?v=6JhoFf67OrA&feature=related[/video]

 

[walkingonthemoon]

^^ MJ being healthy or unhealthy is not so much the issue, but rather that he was using propofol out of a hospital setting. Before giving an insurance for accidents an insurance company would want to know about any out of the ordinary dangerous activity or habits that have a high probability of resulting in an accident, and they will exclude these from the policy. (like bungee jumping or dangerous stunts on stage or using illegal drugs etc) If Lloyds had known about the propofol they would have excluded that from the policy for sure. Or maybe not even given an insurance at all.

I think the estate will also follow AEG and settle/drop the claim, because they won't really be able to argue they didn't know about the propofol, since the MJJ Company is ultimately MJ, and he obviously had to know. Plus even that issue aside, AEG already admitted they didn't have any losses and it's quite likely that the estate won't be able to prove any losses either, since they too probably recovered more than 17.5 mil through TII. The type of policy they had is not similar to a blank check like a life insurance that always pays out the full amount, but it was to cover proven losses from production costs only, only up to 17.5 million, and only to the extent that was not recovered from other sources.

 

[8701girl]

I have no comment for the article itself but I have to comment on the state of the media today.
CNN posted that article on Monday and it was the only one nearly two day after being release. Once TMZ posts the same story with their own spin, other mediums picks up the story. WTH! Even Reuters and BBC, both of which I have held high regards reporting the news and now even they jumped on the bandwagon: check TMZ and copy news from there! In few years time we read copy paste garbage from everywhere?

Rant over.

The media love to copy each other, its actually sad they do that lol

 

[AliCat]

^^ MJ being healthy or unhealthy is not so much the issue, but rather that he was using propofol out of a hospital setting. Before giving an insurance for accidents an insurance company would want to know about any out of the ordinary dangerous activity or habits that have a high probability of resulting in an accident, and they will exclude these from the policy. (like bungee jumping or dangerous stunts on stage or using illegal drugs etc) If Lloyds had known about the propofol they would have excluded that from the policy for sure. Or maybe not even given an insurance at all.

I think the estate will also follow AEG and settle/drop the claim, because they won't really be able to argue they didn't know about the propofol, since the MJJ Company is ultimately MJ, and he obviously had to know. Plus even that issue aside, AEG already admitted they didn't have any losses and it's quite likely that the estate won't be able to prove any losses either, since they too probably recovered more than 17.5 mil through TII. The type of policy they had is not similar to a blank check like a life insurance that always pays out the full amount, but it was to cover proven losses from production costs only, only up to 17.5 million, and only to the extent that was not recovered from other sources.

"Michael's prior drug use" is more appropriately where I was focused on!

 

[144000]

Here's another article that simplifies things:


AEG ends legal dispute with Lloyds over This Is It policy

Live music major AEG Live has dropped its $17.5 million insurance claim against Lloyds Of London with regard to Michael Jackson&#8217;s fated &#8216;This Is It&#8217; residency in 2009.

After Jackson&#8217;s untimely death that year, AEG tried to claim compensation from Lloyds, which had insured part of the planned 50 night O2 extravaganza. But the insurers claimed that the live firm had misrepresented the state of Jackson&#8217;s health when taking out its insurance policy, and sued through the US courts in a bid to have the policy declared void.

According to CNN, AEG confirmed yesterday that it had now agreed with Lloyds to withdraw its insurance claim, and as a result the insurer will have the promoter removed from its lawsuit. Michael Jackson LLC, which is now controlled by the Michael Jackson estate, was also named on that lawsuit, as it too was making a claim against the same insurance policy, and for the time being that part of the litigation will continue.

The deal between AEG Live and Lloyds comes a week after embarrassing emails between executives at the live company, and individuals involved in the &#8216;This Is It&#8217; venture, were published in the LA Times, showing that there were widespread concerns about Jackson&#8217;s physical and mental wellbeing as the show went into rehearsal, and before, which ran contrary to AEG&#8217;s official line at the time.

When said emails first emerged, it was thought they had originated in evidence amassed as part of the Lloyds v AEG case. Though we now know they were provided to the LA Times by Howard Mann, an associate of the Jackson family, leading to allegations that the Jacksons themselves were involved in the leak, and that the emails came from evidence due to be used in a different legal dispute between Michael&#8217;s mother Katherine Jackson and AEG. The Jacksons deny those claims.

Either way, at a first glance, the emails did seem to suggest that AEG execs had hidden big concerns about Jackson&#8217;s health from public view, which might back up Lloyds&#8217; claims that it too had been misled (though obviously, without seeing the actual terms and correspondence between AEG and Lloyds, that&#8217;s hard to know).

Either way, AEG&#8217;s legal rep insists that talks to end the company&#8217;s dispute with Lloyds had been ongoing for months prior to the LA Times report, and that the leaked emails had nothing to do with the subsequent agreement between the two companies.

Meanwhile Paul Schrieffer, a lawyer working for the insurer, confirmed an agreement had been reached, telling reporters: &#8220;In exchange for AEG withdrawing its insurance claim, underwriters agreed to dismiss AEG from the [lawsuit] and to waive any costs recoverable from AEG. The insurance case continues against the Michael Jackson Company LLC for, among other things, rescission of the policy due to nondisclosures of Michael Jackson&#8217;s prior drug use&#8221;.
http://www.thecmuwebsite.com/article/aeg-ends-legal-dispute-with-lloyds-over-this-is-it-policy/

$17.5 million is a lot of money to pay out for an Insurance Company!

Yeah right. Nothing ever has anything to do with any subsequent action. That's always company-speak. Yet the timing is always suspicious. This is nothing new in big money industries.

And, of course. the mystery continues, along with conflicting SPECULATIONS about Michael's condition, and the all too reliable 20/20 hindsight. Truth is, before June 25, 2009, what hospital would know that home use of propofol is dangerous? In this era of drug distributors being called 'doctors', substituting a few bricks for the streets (wearing the entire garb) and the age old thing called a 'house call' and the fact that doctors travel everywhere, and it has been the case for ages, in some way, shape or 'new' form, history is always repeated, despite the hindsight. And the 'winner' is only as good as the loudest most intimidating opinion.

 

[Chamife]

Dr. Christopher Rogers, the coroner who conducted Michael Jackson&#8217;s autopsy, testified that Jackson seemed to be in better shape than most men his age. Michael didn't have any signs of arteriosclerosis, which is unusual for a man of age 50 years. Usually by the time you are 50, you show signs of having arteriosclerosis and Michael didn't have any. His heart was so strong, so Lloyd's of London was not deceived!

Lloyd's of London needed answers to their questions to calculate the risk they were taking.

By not answering their questions, they couldn't calculate the risk. It's their daily job to insure certain risks, but they exactly need to know what (who) they are insuring to decide if they WANT to accept that insurance and to decide what premium (money) they should ask. They didn't need to accept Michael as an insured. Lloyd's of London didn't ask for an insurance. It was the other way around.

And mostly they give you coverage for a period of 30 days, before the insurance is final. In the meantime they expect you to give them the info they need, fill in certain papers etc. If you don't give it, they can nullify the insurance.

But that is with 'normal' insurances. Lloyd's of London is known for insuring 'extraordinairy' risks, so the terms are probably different too.

 

[Memefan]

^^ MJ being healthy or unhealthy is not so much the issue, but rather that he was using propofol out of a hospital setting. Before giving an insurance for accidents an insurance company would want to know about any out of the ordinary dangerous activity or habits that have a high probability of resulting in an accident, and they will exclude these from the policy. (like bungee jumping or dangerous stunts on stage or using illegal drugs etc) If Lloyds had known about the propofol they would have excluded that from the policy for sure. Or maybe not even given an insurance at all.

I think the estate will also follow AEG and settle/drop the claim, because they won't really be able to argue they didn't know about the propofol, since the MJJ Company is ultimately MJ, and he obviously had to know. Plus even that issue aside, AEG already admitted they didn't have any losses and it's quite likely that the estate won't be able to prove any losses either, since they too probably recovered more than 17.5 mil through TII. The type of policy they had is not similar to a blank check like a life insurance that always pays out the full amount, but it was to cover proven losses from production costs only, only up to 17.5 million, and only to the extent that was not recovered from other sources.

He started using Propofol in May...Months after they first took the insurance.

We don't know if he intended to use propofol from the beginning...

AEG didn't have any losses because the estate paid them back all MJ's expenses.