MICHAEL JACKSON AEG Drops $17.5 Mil Insurance Claim

[Andrea]

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9/11/2012 7:25 AM PDT BY TMZ STAFF



The concert promoter behind Michael Jackson's ill-fated "This Is It" tour has dropped its claim to collect on a $17.5 million insurance policy for the singer ... after the insurance company claimed AEG hid the extent of MJ's extensive drug and health issues.

AEG announced the move last night ... claiming the company has been contemplating the decision for months and it has nothing to do with the discovery of new emails that show AEG had doubts about MJ's health around the time the company applied for the insurance policy.

FYI -- the insurance company, Lloyds of London, had sued both AEG and Michael Jackson LLC in the wake of MJ's death to cancel out the policy. L.O.L. has claimed AEG and MJ were not forthright about the singer's drug addiction and failing health at the time they applied for the policy.

Now, a rep for Lloyds tells CNN ... "In exchange for AEG withdrawing its insurance claim, underwriters agreed to dismiss AEG from the case and to waive any costs recoverable from AEG."

Lloyds says it's NOT dropping the case against Michael Jackson LLC -- explaining they will press on seeking "rescission of the policy due to nondisclosures of Michael Jackson's prior drug use."

[paula-c]

L.O.L. has claimed AEG and MJ were not forthright about the singer's drug addiction and failing health at the time they applied for the policy.

And this abbreviation? LOL! :icon_lol:

[Andrea]

L.O.L. has claimed AEG and MJ were not forthright about the singer's drug addiction and failing health at the time they applied for the policy.

And this abbreviation? LOL! :icon_lol:

I noticed that right away too paula.  It's something we've joked about on the forum before too, the irony of those initials for a life insurance company.

[YoungMack]

Wow..... what do you all think of this? So AEG took out a 17 milliin $$$$ insurance policy on MJ
and coincidentally he "died" or killed shortly after by someone who was employed by AEG??
This also makes sense as to why there were so many conflicting stories about MJ being healthy for the tour and unhealthy...... This kind of worries me but then again it could be all part of the game..... But everyone has heard stories of people killing people to get insurance money......... Hmmmmmmmm dont know what to think.

[MaryK]

I think there were reports that they failed to present a valid death certificate in the past or something like that?

Does anyone remember?

So basically...yes of course..... :LolLolLolLol:

[everlastinglove_MJ]

Material misrepresentation (i had to look that up :icon_e_geek:) by AEG? Or.. did L.O.L. not do a very good job of investigating the policy??

The insurance company would normally put Michael through a lengthy medical evaluation, as would be customary for any insurance policy like this — especially one this large. This evaluation usually includes review of medical records, which raises the question of whether the insurance company should have discovered any misstatements. If so, their failure to do so could mean the fault lies with them, not MJ or AEG.

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Now, I wonder if L.O.L. didn't put Michael through a lengthy medical evaltuation.. I think they did and they might have medical records which show that Michael was not a drug addict and didn't have a failing health, though they are not allowed to publish this because they have to protect the privacy of their client. AEG is feeding the media and so the public with assumptions. Truth is out there, it's not just visible to us..yet.

Just wait and see in court  :judge-smiley:

[Andrea]

Just a head's up, they're about to discuss this on TMZ live.

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[hesouttamylife]

Didn’t we discuss somewhere that the name on the exam and the insurance policy was something other than Michael Jackson? Maybe I’m losing it, but I could swear I remember reading that and thinking the policy is of no value anyway because the person being named as the assured is an imposter.

[hesouttamylife]

Here it is:



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Michael Jackson Death Investigation: Who Is Doctor David Slavit?
First Published: August 25, 2009 10:16 PM EDT Credit: Catherine Nance
NEW YORK, N.Y. -- CaptionDoctor Conrad Murray has been the center of police and media attention since the death of Michael Jackson on June 25 at the age of 50, but a number of other doctors names have been brought up recently in legal documents, including that of Dr. David Slavit.

Slavit, an ear-nose-and-throat specialist, based in New York City, administered Michael Jackson’s physical in February of this year, which the pop star reportedly passed. The physical report allowed Lloyd’s of London to issue the insurance policy on the pop star, under the name of “Mark Jones,” according to the Los Angeles Times, to AEG Live in relation to his London concert dates.

So who is Slavit?

So far, the doctor has remained quiet in the aftermath of Jackson’s death on June 25 at the age of 50, despite requests for comment from various media outlets. Access Hollywood is amongst the outlets that have requested interviews with him and have been turned down.

A receptionist for the doctor reportedly told Britain’s Mirror newspaper, “He will not be speaking.”

But some details have emerged despite the doctor’s silence.

According to the NY Post, Slavit, 48, has previously treated singers including Margaret Lattimore, a mezzo-soprano, who has been nominated for a Grammy.

“There’s nobody I would trust more with my voice,” Lattimore reportedly told the paper. “He’s a fabulous doctor. Very discreet, incredibly professional, and the gentlest, sweetest man you can imagine.”

Slavit, 48, is married to wife Robin, 49, and the couple lives in New Jersey with three children, the Mirror previously reported.

His father, Leonard Slavit, is a lawyer and defended his son in a lawsuit in 1999 over alleged unpaid rent, which was settled out of court, according to the NY Post.

“I found him to be completely dishonest or I wouldn’t have had to sue him to get the money he owed me. I eventually got it,” Dr. Howard Belin reportedly told the NY Post. Dr. Belin rented space in his NYC townhouse to Slavit and claims Slavit left before paying $41,000 in unpaid rent and $12,000 in damages, he told the paper.

As for his relation to Jackson, according to AEG Live’s Randy Phillips, Slavit was, “hired by the insurance carriers” for the physical.

”[He] was hired by the insurance carriers to come out here,” Phillips previously told Access Hollywood. “He gave Michael a pretty grueling five-hour physical and did all the tests…we were never privy to the patient doctor information, which we wouldn’t be. But our insurance broker told us that Michael passed with flying colors – those were the words — and all he had was a little hay fever.”

Phillips said AEG received the policy, which would not have been issued without the physical report.

“We got an insurance policy because of the physical,” Phillips told Access. “Lloyd’s of London would not have given us a policy if there was something wrong in that physical.”

According to the LA Times, per a reported deal with AEG, if any of the $17.5 million policy is eventually paid, 100% will go to the Jackson estate.

[simplyme]

Wow..... what do you all think of this? So AEG took out a 17 milliin $$$$ insurance policy on MJ
and coincidentally he "died" or killed shortly after by someone who was employed by AEG??
This also makes sense as to why there were so many conflicting stories about MJ being healthy for the tour and unhealthy...... This kind of worries me but then again it could be all part of the game..... But everyone has heard stories of people killing people to get insurance money......... Hmmmmmmmm dont know what to think.

All entertainers and tours have to be insured to cover unforeseen losses for any number of reasons.  Lindsay Lohan comes to mind.  She had a hard time getting insurance to work because of her shenanigans.  They wouldn't kill Michael for 17mil when he was simply worth much more dead then alive.

[scorpionchik]

Didn’t we discuss somewhere that the name on the exam and the insurance policy was something other than Michael Jackson? Maybe I’m losing it, but I could swear I remember reading that and thinking the policy is of no value anyway because the person being named as the assured is an imposter.

Correct. The policy is voidable since its inception. MJ did not even sign that policy but someone else did and for some odd reason, policy was accepted by underwriters of Lloyds. LOL and BS. Lloyds needs to sue broker and AEG not MJ. Eventually, they will withdraw claim against MJ too.

[voiceforthesilent]

Didn’t we discuss somewhere that the name on the exam and the insurance policy was something other than Michael Jackson? Maybe I’m losing it, but I could swear I remember reading that and thinking the policy is of no value anyway because the person being named as the assured is an imposter.

Correct. The policy is voidable since its inception. MJ did not even sign that policy but someone else did and for some odd reason, policy was accepted by underwriters of Lloyds. LOL and BS. Lloyds needs to sue broker and AEG not MJ. Eventually, they will withdraw claim against MJ too.

Scorpionchik - so glad to see you around

Interesting that they used "M"ark "J"ones (MJ). LOL. Literally.  Yes, we need to see this through because I too think that the claim will be dropped. What is confusing though - didn't the articles earlier this week say that MJ was supposed to have a physical in London? Why would that be if he had one before? Did I miss something?

About the false name - I work for a medical facility that treats some VIP's and they use false names for security and confidentiality reasons when scheduling of appointments. If someone were to look at our scheduling database you wouldn't know who the celebrities were unless you knew what names they were going by. However, in the actual medical record their name is revealed. So I'm not sure that MJ using Mark Jones (if that's true) would make it null and void. I guess it would depend on whether his real name was revealed in the medical record.

Blessings

[scorpionchik]

Thanks Voice. I have  always been around  :icon_e_wink: because I love Michael.

Yes, physical exam was going to take place in London by their docs to expand insurance policy and include London as a venue for accidental death of the key person which never happened.

[2good2btrue]

Reportedly, AEG spent some $20 to $25 million on the tour before the King of Pop’s death, and this insurance was supposed to protect that investment. Both AEG and a Michael Jackson limited liability company that is controlled by the Estate were named as beneficiaries eligible to collect that money under the policy.



But, AEG and the Estate haven’t collected this money yet … and both are now embroiled in a new lawsuit by insurer Lloyd’s of London. The renowned insurance company sued, asking a California judge to rule that the policy should be voided. They don’t want to pay the $17.5 million.

Why the lawsuit? Lloyd’s says that AEG and Michael Jackson both lied during the insurance process. Reportedly, they didn’t tell about Jackson’s use of prescription drugs … namely, the propofol which killed him. The insurance company also says that Michael Jackson’s medical history, including the doctors he saw, weren’t properly disclosed.

The legal term for this type of insurance denial is “material misrepresentation.” If Michael Jackson or AEG gave false information on the insurance application or otherwise during the process of obtaining the policy, then the law permits the insurance company to avoid having to pay … but, only if the false or missing information is “material.” In other words, generally speaking, the “misrepresentation” must be held to be relevant to the insurance policy and cause of death for this to be a proper basis to deny a claim.

The insurance company would normally put Michael through a lengthy medical evaluation, as would be customary for any insurance policy like this — especially one this large. This evaluation usually includes review of medical records, which raises the question of whether the insurance company should have discovered any misstatements. If so, their failure to do so could mean the fault lies with them, not MJ or AEG.

This means that either someone really tried hard to hide the truth of Michael’s prescription drug use, or Lloyd’s of London didn’t do a very good job of investigating the policy.

The truth will now play out in court. Reportedly, the two sides have been trying to settle the claim ever since the King of Pop died, but it hasn’t worked. So now they have to resolve it through litigation.

The Estate is ready to battle. Estate attorney Howard Weitzman says that the insurance claim is legitimate and the insurance company is merely trying to avoid paying out what it should.


In these cases, an important factor is the two-year “incontestability period.” If someone has a material misrepresentation, but more than two years pass after the application and the date of death, then the insurance company still has to pay. That rule wouldn’t help MJ’s estate or AEG though, since the policy wasn’t two years old when he died.

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From the same link posted earlier...thanks

[curls]

I'm having a hard time knowing what to believe in all this recent legal stuff.  Where does reality end and the hoax storyline begin?  Is there indeed any reality or can it ALL be part of the hoax plot being played out? Does anyone know anything? Does everyone know everything? Who knows what and how much?!  Nothing changes where puzzling, unanswered questions lie! I keep watching!