Why do you think King is filing suit? Or put it like this... His estate lost money... his wife and family. Plus, we do not see an accounting analysis of the transactions. He may have lost money immediately. A $15mm policy would cost a chunk of change! Obviously, if there was some money to get at the end, they would pay him a little up-front.
If you are sitting at the poke table wondering why all those eager fools sat down to play and lose their money... chances are you are the mark.
While it is a little different scenario. Think of it like those no money down scenarios where the person is holding a fist full of credit cards and claims he bought a house and received $50k in cash at the closing. But he still owes 50 banks $10k each at 21% interest. ...I made $50 Grand