Can Concert Promoter Recoup Michael Jackson Investment?
Sat Jun 27, 2009 @ 07:37AM PSTBy Eriq Gardner
Mary Craig Calkins, an insurance lawyer at Howrey LLP, tells us that AEG's insurance carrier will eagerly await the results of the late singer's toxicology report from the autopsy. Most "key man" insurance policies cover accidental death, so the insurers will want to know if there were any drugs or foul play involved that would indicate something else.
California has statutes that prevent insurers from covering intentional, willful acts. In addition, if there were drugs involved, the insurance company will closely scrutinize what was previously disclosed on the insurance forms about Jackson's condition.
Most insurers eventually pay out, says Calkins, but she says "It's not unusual to have negotiations (between the broker and the insurance company) over even less a megastar than Michael Jackson."
The lawyer points to insurance difficulties in the aftermath of deaths to actors including Heath Ledger, Brandon Lee, John Candy, and John Ritter.
Someone is going to be on the hook for a huge loss. But maybe not quite as much as news reports suggest. Calkins believes that not all purchasers of Jackson concert tickets will request an actual refund, preferring to hold onto their tickets as memorabilia items.
That gives us an idea.
Considering the huge amount of interest in Michael Jackson, and the extensive preparations already made for the Jackson concert series, maybe AEG should consider staging a series of "tribute" concerts this summer, featuring many Jackson musical acolytes, with profits going to starving children in Africa. We Are The World, part two?
Filed Under Michael Jackson
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