An event cancellation claim by the promoter of Michael Jackson’s planned London concerts could be complicated by medical questions surrounding his death, with standards high to prove any kind of fraud or misrepresentation in the application process, according to legal expert Randy Maniloff, a partner in the Commercial Litigation Department at White and Williams LLP.
Although concert promoter AEG Live said Jackson had passed a medical exam, the methodology of the physical could be questioned when it comes to insurance coverage because Jackson died shortly after passing the exam, Maniloff said.
With respect to the medical exam, some key factors come into play for insurers questioning the exam, including who chose the doctor, Maniloff said. If the insurers chose the doctor, it could be a factor in their ability to raise issues. If one carrier picked the doctor when there are multiple carriers on the risk, the other carriers may take issue with that.
In the case of medical exams, the performer usually discloses pre-existing conditions, and underwriters decide whether to cover or decline coverage based on this. If there is a pre-existing condition that the performer fails to disclose, and that leads to an event cancellation, insurers will not cover the loss.
While there is some speculation that prescription medication may have been involved in Jackson’s death, event cancellation insurance coverage will likely depend on whether the use of such medication was disclosed and whether insurers accepted or declined coverage for complications arising from the medication.