Michael Jackson's estate executors have settled a $17.5 million (£10.9 million) lawsuit filed against bosses at top insurance company Lloyd's of London after they refused to pay out following the King of Pop's death.

The pop superstar's representatives took out the big-money policy on the singer's ill-fated This Is It concerts two months before his passing in June, 2009, and made a claim for compensation when the shows were scrapped after his death.

Lloyd's of London chiefs originally issued the policy to cover potential losses for the London residency, but in 2011, company bosses asked a judge in Los Angeles to declare the documents null and void, claiming Jackson lied about his medical history and drug addiction.

They insist the policy was restricted to "losses resulting from accident only", stating the Thriller hitmaker's official cause of death was listed as homicide.

The case was due to go to trial next month (Feb14), but the two parties have avoided a legal showdown by reaching an out-of-court agreement.

The news was announced by both parties on Wednesday (15Jan14), but details have been kept under wraps.

Jackson died from a Propofol overdose in 2009. His personal physician, Dr. Conrad Murray, was convicted of involuntary manslaughter for administering the fatal dose of the anaesthetic, and spent two years behind bars. He was released in October (13).

News of the insurance settlement emerges two days after a Los Angeles judge rejected Katherine Jackson's latest bid for a new trial in her high-profile negligence case against This Is It promoters at AEG Live.