Pacific Life Insurance asked a federal judge to dismiss an $8.5 mn lawsuit filed by NASCAR driver Kyle Busch, arguing the complaint fails to state a claim eligible for relief.
In an amended filing lodged with the U.S. District Court for the Western District of North Carolina, Busch alleged five indexed universal life policies were sold to him and his wife without full explanation of risk.
He said an agent framed the policies as retirement income tools and suggested certain payments were final.
Pacific Life pushed back in a written statement. The insurer said it has operated with fairness and integrity for nearly 160 years and supports families and businesses planning long-term financial security.
The company said its court filing shows the claims lack merit and said it expects the legal process to confirm that view.
The insurer said the IUL policies, sold between 2018 and 2022, provide life protection alongside the ability to build cash value over time.
That value, the company said, can be accessed for various purposes, including supplemental retirement income. Pacific Life added that policyholders should work closely with financial professionals to match coverage with objectives.
Busch’s complaint painted a different picture. He said the policies were marketed as institutionally engineered pieces of a retirement strategy.
According to the filing, he and his wife were repeatedly told the policies would perform as illustrated.
The lawsuit said Busch paid $10.4 mn in premiums and suffered a net out-of-pocket loss of $8.5 mn. It argued the couple could not independently assess how the policies functioned, regardless of their financial sophistication.
The filing said performance hinged on carrier-controlled factors such as target premium design, compensation recovery, internal charges, cost-of-insurance calculations, and future administrative decisions.
Busch alleged those elements were opaque, undisclosed, and impossible for policyholders to fully understand.
Pacific Life’s motion asks the court to dismiss the case in its entirety. The judge has not yet ruled.
