Kanye West Psychosis Diagnosis May Trigger Huge Payout 
 
 Kanye West's Psychosis Diagnosis May Trigger Huge Payout 
 
 EXCLUSIVE 
 
 Kanye West is dealing with a medical emergency, but there's a silver lining ... it may have saved him millions of dollars. 
 
 Kanye announced the cancellation of his tour 6 hours before he was handcuffed to a stretcher and hauled off to UCLA Medical Center for psychiatric evaluation. 
 
 The rapper not only reportedly lost around $30 mil for his cut of the remaining concerts, but he's on the hook for venues and others with whom he made contracts. 
 
 TMZ has learned ... Kanye had an insurance policy that covered him in the event illness prevented him from performing. The policy provides the insurance carrier will pay Kanye for not only the money he'd make but the money he was obligated to pay others if "accident or illness ... prevents any Insured Person from appearing or continuing to appear in any or all of the Insured Performance(s) or Event(s)." 
 
 Translation ... Kanye's doctor laid the groundwork for filing a claim under the policy. 
 
 BTW ... the insurance company can deny coverage if Kanye had a preexisting condition that he didn't disclose at the time the policy was issued, or if his illness was caused by his "unreasonable or capricious behavior." ||||| Kanye West was not placed on a 51-50 psychiatric hold before he was hospitalized for exhaustion, a source confirms to PEOPLE. 
 
 Despite reports claiming that the rapper was committed against his will, a source tells PEOPLE: “There was a small altercation at the gym but he was deemed medically stable and decided to seek medical help at his doctor’s request.” 
 
 The source adds: “We’re super confident he’s going to pull through.” 
 
 PEOPLE confirmed that West, 39, was hospitalized for exhaustion on Monday afternoon after canceling his Saint Pablo tour. 
 
 “He is exhausted and currently dealing with sleep deprivation,” a source told PEOPLE. “He went to the hospital at will under the advice of his physician. He’s fine.” 
 
 The source added that “he was not restrained” and that “he went freely.” 
 
 Last night, Kim Kardashian West was scheduled to attend the Angel Ball in New York City, but did not attend. It would have marked her first public appearance since she was robbed in Paris in early October. 
 
 The source also told PEOPLE that Kardashian West is “being amazing” as his family and friends support his recovery. 
 
 “Family and friends are around. Kim is being amazing. As are all of his friends and team and inner circle.” ||||| He'll need a doctor's note. 
 
 Yesterday (Nov. 21), after a rep for Kanye West confirmed that the remaining 21 dates of his Saint Pablo Tour would be canceled, Billboard estimated it would result in the refunding of more than 300,000 tickets, worth $27.3 million. At the time, however, the big unknown was why West canceled the dates, leaving open the question of whether insurance would cover the costs of shutting down the tour. 
 
 Last night, West was placed under observation at a Los Angeles-area hospital, and a source told Billboard he was suffering from exhaustion and sleep deprivation. And while there is little to no further information about West's condition or the specific reasoning for canceling the tour dates, exhaustion raises several possibilities in terms of West's potential financial liabilities. 
 
 Assuming West had insurance for his Saint Pablo Tour, a standard policy within the music industry would cover an "accident to or illness of any insured person which, in the opinion of an independent medical practitioner approved by the underwriters, entirely prevents any insured person from appearing or continuing to appear in any or all of the insured performances or events." 
 
 Essentially, that would require a third party medical practitioner to determine whether or not West's exhaustion would physically allow him to continue. But it also would typically come with exclusions: for instance, if the exhaustion was due to drug use, sexually-transmitted diseases, "unreasonable or capricious behavior" -- which would include cancellations as a result of excessive partying or similar behavior -- and whether there was a pre-existing condition, meaning if the person had a history of exhaustion or a previously-diagnosed and undisclosed illness. 
 
 A fairly textbook example of a situation that would be covered by this type of policy is Lady Gaga's 2013 Born This Way Ball Tour. With 22 dates to go on the trek, Gaga suffered a labral tear in her right hip that required surgery, forcing her to cancel the remaining shows on the tour and causing $25 million worth of ticket refunds. Gaga's injury clearly would have been covered by this type of insurance, including expenses related to shutting down the tour, advertising costs and lost revenues for both the promoter and performer. 
 
 Again, however, West's situation is slightly different, and there is no clear answer. 
 
 "[The policy] is often invoked very quickly for specific injury or illness that is diagnosed easily," says Paul Bassman, president/CEO of Ascend Insurance Brokerage, one of the top insurance firms in the music industry. "Exhaustion would definitely be harder to prove, but I wouldn't say it's impossible." 
 
 Live Nation, the promoter for the Saint Pablo Tour, likely has its own policy, which generally differs from an artist's policy by not carrying exclusions for things like drug use, capricious behavior or other situations, though the independent medical evaluation would still be required. That could leave open a situation where Live Nation would be covered for its own expenses, including its guarantees to West (if they are responsible for paying those guarantees in the event of a cancellation), while if West's condition was not deemed to be covered by his insurance policy, he may still be on the hook. 
 
 For now there is little to do but hope that West is getting the treatment he requires, while any definitive judgment is too early to assess. "We just don't know enough about why he canceled," Bassman adds. "Until more information is available on the specifics of the cancellation, it's not possible to determine whether this will be covered by insurance or not." ||||| Eight months after canceling his Saint Pablo tour and a subsequent hospitalization for exhaustion, Kanye West is going after several insurers of his tour, claiming they are stalling on paying out a “multi-million dollar claim” stemming from the canceled concerts. 
 
 According to court documents filed on Tuesday and obtained by PEOPLE, the rapper’s company, Very Good Touring, Inc., is suing syndicates of insurance company Lloyd’s of London for $10 million. West, 40, claims in the filing the insurers have made him go to great lengths to prove his mental breakdown was legitimate. 
 
 PEOPLE was not able to immediately reach Lloyd’s of London for comment. The insurers have also not filed an answer to the complaint with the court. 
 
 In the documents, first obtained by The Hollywood Reporter, West claims he and his company paid “hundreds of thousands of dollars in insurance premiums” and claims the insurers are hunting “for some contrived excuse not to pay.” 
 
 “Nor have they provided anything approaching a coherent explanation about why they have not paid, or any indication if they will ever pay or even make a coverage decision, implying that Kanye’s use of marijuana may provide them with a basis to deny the claim and retain the hundreds of thousands of dollars in insurance premiums,” states West in the filing. 
 
 The papers state West’s “behavior was strained, confused and erratic” at his Nov. 19 concert and that his condition “showed no sign of improvement” the next day, “prompting the decision by all concerned to cancel the show scheduled at the Los Angeles Forum that evening, and to cancel the entire balance of the Tour.” 
 
 The entertainer — who is married to Kim Kardashian West — claims in the court filing that he was hospitalized at UCLA Neuropsychiatric Hospital Center for eight days, after which he was “under full time care and supervision.” 
 
 The papers also state he “continues to be treated” by his primary physician at the hospital, who provided sworn testimony stating he could not tour because of a “debilitating medical condition.” 
 
 RELATED VIDEO: Kim Kardashian Battles Intense Anxiety As Kanye West Has A Breakdown: ‘I Just Want to Disappear’ 
 
 “While Kanye was still under medical care for his disabling condition, the Defendant syndicates demanded that Kanye submit to an immediate [independent medical examination],” states the papers. “Kanye was made available for a purported IME by a doctor, hand-selected by the insurers’ counsel, who was predisposed to look for some reason to deny the claim. Yet even Defendants’ selected doctor had to admit that Kanye was disabled from being able to continue with the Tour.” 
 
 West also alleges in the papers that he and “at least seven other persons affiliated” with him and his company were presented for an examination under oath. 
 
 “Kanye is very much focused on the present and future and in a very positive space,” a source close to West tells PEOPLE about the filing. West’s lawyer and rep both declined to comment. 
 
 In late November when West was hospitalized, a source close to the star told PEOPLE West was “exhausted and currently dealing with sleep deprivation. “He went to the hospital at will under the advice of his physician. He’s fine.” West has never revealed an official diagnosis. 
 
 West announced the cancellation of his tour after a string of erratic behavior at his concerts that included long rants, walk-offs and no-shows.
– Had Kanye West canceled his tour on a whim, he would have been on the hook for a massive amount of money owed to venues and anyone else with whom he broke a contract. But since he was taken to the hospital with a psychiatric emergency soon after canceling, his insurance policy may have saved him millions of dollars, TMZ reports. The policy covers him in the event an "accident or illness" prevents him from performing, so now he can file a claim to collect. It's not a slam dunk, as coverage can be denied if an undisclosed pre-existing condition is discovered—or if the insurance company finds that the cause of his illness is his own "unreasonable or capricious behavior," a category that would include things like excessive partying, per Billboard. Though it was reported that West was placed on a 51-50 psychiatric hold and committed against his will, a source tells People that's not the case. "He went freely" and "was not restrained," the source says. "There was a small altercation at the gym but he was deemed medically stable and decided to seek medical help at his doctor’s request." The source also echoes previous reports that West is simply dealing with exhaustion and sleep deprivation. Wife Kim Kardashian is by his side at the hospital, a source tells E!. "Their time together was just about support. Kanye will be OK. He has a good set of doctors."