'This Is It' Insurance Excludes 'Illicit' Drug Use

Concert promoter AEG Live's insurance on Michael Jackson's London concerts has provisions that may deny a payout if Michael was involved in the "illicit taking of drugs." Other clauses that would prevent a payout include if the entertainer concealed information or acted carelessly to increase the risk of a no-show.

The policy, a copy of which was provided Friday to The Associated Press, covers cancellations resulting from death. But it was not immediately clear whether any medications Michael Jackson was taking would negate a payout up to $17.5 million, which would ultimately benefit his estate.

The insurance policy, covering the first 13 of 50 shows, was taken out in April 2009. Such a policy and its provisions are considered standard for events on the scale of the one for which Michael Jackson was preparing.

A New York doctor with no connection to AEG Live conducted a medical exam of Michael Jackson in Los Angeles in February. AEG Live Chief Executive Randy Phillips said he was told by the insurance underwriter that Michael passed "with flying colors." The exam results were shown to the insurers, but not to AEG Live.

A claim could take months to resolve through a settlement or in court.

Source: MJFC / AP