NU Online News Service, June 30, 3:02 p.m. EDT
An event cancellation claim by the promoter of Michael Jackson's planned London concerts could be complicated by medical questions surrounding his death, a legal expert said.
Randy Maniloff, a partner in the Commercial Litigation Department at White and Williams LLP, commented that although promoter AEG Live said Mr. Jackson had passed a medical exam with "flying colors," the methodology of that physical could be an issue when it comes to insurance coverage.
Mr. Maniloff said insurers could look into the results of the medical exam given that Mr. Jackson passed away soon after passing it. "Given that his death seems inconsistent with the supposed results of the medical exam, it's certainly an issue to look into," he said.
The medical exam, Mr. Maniloff added, is as fair game as anything in the application process, and he noted that whenever there is a big loss in such a short period of time, fingers are always pointed and the process becomes complicated.
The extent of cancellation in this case is significant, Mr. Maniloff said, and he added he thinks insurers should look into all areas of coverage. "It's not a routine thing," he said.
However, with respect to the medical exam, some key factors come into play. Firstly, Mr. Maniloff said insurers' success in questioning the exam could depend on who chose the doctor.
If the insurers chose the doctor, he noted, that 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.
Additionally, Mr. Maniloff said standards are high to prove any kind of fraud or misrepresentation in the application process.
But fraud and misrepresentation may not even be as much of an issue as the process of the exam itself.
One insurance professional who is heavily involved in securing event cancellation insurance coverages within the entertainment industry who spoke on background said medical exams for a short-term tour are generally not intense.
The performer, he said, usually discloses pre-existing conditions, and underwriters have discretion whether to cover or decline coverage for those pre-existing conditions. 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.
Insurers will likely look into how medical exam questions were answered to determine if there was any material misrepresentation, the professional said.
While there is some speculation that prescription medication may have played a part in Mr. Jackson's death, the insurance professional said, again, event cancellation insurance coverage will likely depend on whether the use of such medication was disclosed and whether insurers chose to accept or decline coverage for complications arising from the medication.
The lead broker on the account would be able to shed light on information concerning the medical exam, the professional said.
Sources within the industry have speculated that Robertson Taylor may be the lead broker, but John Silcock, chief executive of Robertson Taylor, declined to comment on the matter. He also said he was not prepared to comment on anything relating to Michael Jackson or event cancellation coverage issues in general.
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