NASCAR racing star Kyle Busch and his wife have settled an $8.5 million lawsuit they broug
ht against Pacific Life Insurance
and an insurance agent that alleged the insurer and agent misled the couple and caused the
m to lose millions of dollars.
“The Parties are in the process of documenting and finalizing their settlement papers and
intend to file a stipulation or motion for dismissal of this action within the next 30 days with all parties
bearing their own fees and costs,” reads the notice of settlement filed with U.S. District Co
urt in Western North Carolina.
The terms of the settlement were not disclosed in the court filing.
In an amended complaint filed in January, Busch argued that Pacific Life and Arizona-bas
ed agent Rodney Smith had promoted an indexed universal life insurance strategy that “exp
osed Plaintiffs to substantial financial risk concealed by misleading projections, unrealistic as
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sumptions, and material omissions.”
Smith reportedly told the Buschs in 2017 that the policies would be fully funded and self-sustaining after a limited number of annual premium payments, and wou
ld generate big and tax-free retirement income. Busch began to raise questions after he re
ceived a sixth premium notice, having been told he would only need to pay five years of premiums, the complaint argued.
Smith and his Red River LLC firm denied most of the charges in the complaint. Pacific Life
asked the federal court to dismiss the lawsuit, contending the complaint failed to state a legitimate claim.
Pacific Life also said that the Buschs signed multiple documents acknowledging they u
nderstood the policies, including one that indicated the couple would pay planned premi
ums and hold the policies over 30 years—through age 70 and beyond, the
Associated Press reported. Busch failed to fully fund the policies, let some lapse and surrendered the others, the life insurer noted.
