Kyle Busch Pacific Life Insurance Lawsuit: Do You Own an IUL Policy That Could Cost You Millions? — Busch et al. v. Pacific Life Insurance Company et al., No. 5:2025cv00195

NASCAR two-time Cup Series champion Kyle Busch and his wife Samantha filed suit — Busch et al. v. Pacific Life Insurance Company et al., No. 5:2025cv00195 — in the U.S. District Court for the Western District of North Carolina in October 2025, alleging that Pacific Life Insurance Company and its agent misled the couple into purchasing indexed universal life (IUL) insurance policies that cost them more than $8.5 million. The case settled confidentially on February 26, 2026. If you or someone you know owns an IUL policy, the facts in this case may directly concern you.

Kyle Busch Pacific Life Insurance Lawsuit — Key Facts

Field	Detail
Lawsuit Filed	October 14, 2025 (state court); removed to federal court November 20, 2025
Defendant	Pacific Life Insurance Company; Rodney A. Smith; Red River LLC
Alleged Harm	Fraudulent IUL sales practices; misleading projections; breach of fiduciary duty; violations of NC Unfair and Deceptive Trade Practices Act
Specific Law Alleged	North Carolina Unfair and Deceptive Trade Practices Act; negligence; breach of fiduciary duty
Who Is Affected	Purchasers of IUL policies sold by Pacific Life agents using similar retirement income illustrations
Court & Case Number	U.S. District Court, W.D. North Carolina, No. 5:2025cv00195
Current Court Stage	Settled — notice of settlement filed February 26, 2026; dismissal pending
Settlement Status	Confidential settlement reached; terms not disclosed
Law Firms Involved	RP Legal (Robert G. Rikard, counsel for the Busches)
Last Updated	May 25, 2026

Where Does the Kyle Busch Pacific Life Settlement Stand Today?

• The parties filed a notice of confidential settlement with the court on February 26, 2026. Terms were not disclosed.
• Both sides issued a joint statement confirming the resolution was mutually acceptable and avoids further proceedings.
• The parties were finalizing dismissal paperwork within 30 days of the filing, with each side bearing its own attorneys’ fees and costs.

Who Is Pacific Life Insurance and Why Are They Facing a Life Insurance Lawsuit?

Pacific Life Insurance Company is a major U.S. life insurer whose products include indexed universal life policies — a type of permanent life insurance that ties cash value growth to the performance of a stock market index. Pacific Life markets its IUL products nationally through appointed agents and financial advisors. The Busch case is not isolated — in May 2024, an Idaho jury ordered Pacific Life and an agent to pay more than $1.5 million to a retiree over a separate indexed universal life insurance claim, and multiple carriers including Allianz, Transamerica, and National Life Group have faced similar litigation over IUL sales practices. If you were sold an IUL policy with promises of guaranteed tax-free retirement income, the allegations in this case may sound familiar.

What Did Pacific Life and Its Agent Tell Kyle Busch About His IUL Policies Between 2018 and 2022?

Kyle and Samantha Busch allege that Pacific Life designed and promoted a series of complex IUL policies as “tax-free retirement plans” that were misrepresented as safe, self-funding investment vehicles. The complaint covers five separate policies purchased over four years, and the financial gap between what they were promised and what actually happened is the center of the dispute.

Kyle Busch was assured that by contributing approximately $1 million annually for five years, he could withdraw $800,000 per year starting at age 52. Instead, Busch discovered that his funds were being directed to the insurance company’s account rather than being invested in the market, preventing his investment from growing as markets rose. The couple says they paid over $10.4 million in premiums before discovering what was happening.

According to the amended complaint, the defendants used misleading illustrations, undisclosed costs, and false promises of guaranteed multipliers and controllable charges to induce Kyle and Samantha to pay more than $10.4 million in premiums, resulting in net out-of-pocket losses exceeding $8.58 million. The lawsuit also alleged that Pacific Life placed commission earnings above policyholder interests and that agent Rodney Smith told the Busches their policies would be self-sustaining after a limited number of annual premium payments — a promise the Busches say never materialized.

For consumers who want to understand how securities fraud class actions and financial product misrepresentation cases work under federal law, our coverage of how financial product misrepresentation lawsuits move through federal courts provides useful background on the legal standards involved.

Related article: Costco Kirkland Tortelloni “No Preservatives” Lawsuit, Did the Label Lie to You? Turner v. Costco Wholesale Corp., Filed April 29, 2026

How Pacific Life and Agent Rodney Smith Allegedly Misled the Busches Between 2018 and 2022

The Buschs began purchasing IUL policies from insurance agent Rodney A. Smith and his limited liability company, Red River, in 2018. IUL policies are combination insurance products that provide immediate death benefit protection and the potential for cash value growth. The Busch family bought five separate IUL policies between 2018 and 2022 to provide more than $90 million in insurance protection. Some policies lapsed before the litigation, while two were exchanged for other policies.

Kyle Busch said the trouble became apparent when he received a sixth-year premium notice despite the arrangement being structured as a five-payment deal. “I was like, wait a second, what am I getting a sixth-year premium payment for?” Busch said. “We got on a call with the guy who sold me the premium policies and he ran me around in all these circles, couldn’t answer the questions, so I was like, this is fishy.”

It was later found that the $10.4 million the couple had contributed would be exhausted in just 16 months — a far cry from the decades of tax-free retirement income they had been shown in the original policy illustrations.

Insurance Business reported in March 2026 that the Busch case drew attention from financial planning advocates and IUL critics who argue the product is routinely oversold using unrealistic performance assumptions. If you own an IUL policy and the original projections no longer match your actual cash value, this case may directly affect how you evaluate your options.

What Specific Laws Did Pacific Life Allegedly Violate?

The lawsuit alleged that Pacific Life and its agent violated North Carolina’s Unfair and Deceptive Trade Practices Act, claiming the company placed commission earnings above policyholder interests and used speculative projections that did not adequately disclose associated risks and costs. The complaint also included claims of negligence and breach of fiduciary duty.

Pacific Life pushed back hard. The insurer argued in its motion to dismiss that the Buschs bought five IUL policies between 2018 and 2022 providing more than $90 million in life insurance coverage, that both spouses signed multiple documents confirming they understood how the policies worked, and that the Buschs failed to timely pay planned premiums and failed to monitor allocation of their policy values.

Are You Part of the Kyle Busch Pacific Life IUL Dispute — Could Your Policy Be Affected?

This lawsuit was a private civil case, not a certified class action — so there is no class you can formally join. However, it spotlights IUL sales practices that consumer advocates say are industry-wide. Here is exactly how to know if your situation is similar.

You may have a similar claim if:

• You purchased an indexed universal life insurance policy from Pacific Life, Allianz, Transamerica, National Life Group, or another carrier between 2015 and 2025
• You were shown illustrations projecting significant tax-free retirement income or “self-funding” policies after a fixed number of premium payments
• Your actual cash value is significantly lower than what was illustrated at the time of sale
• You were not clearly told that policy costs could rise over time or that illustrations were based on non-guaranteed assumptions
• You paid premiums for five or more years and received little to no cash value growth

You likely do NOT have a similar claim if:

• You purchased a term life insurance policy or a straightforward whole life policy with fixed premiums and guaranteed cash value
• You received and reviewed current projections from your insurer and your policy is performing within the illustrated range
• You voluntarily surrendered or lapsed your policy and were given accurate information about the consequences

IUL Policyholders Outside North Carolina — Are You Still Covered?

The Busch lawsuit was filed in North Carolina under state law. Individual IUL complaints are filed in the state where the policyholder resides. However, the broader pattern of alleged IUL misrepresentation is a national issue — multiple carriers including Allianz, Transamerica, and National Life Group have faced similar litigation over IUL sales practices across the country. If you live outside North Carolina and believe you were misled about an IUL policy, you may still have options under your own state’s consumer protection or insurance fraud statutes.

If you are unsure whether your IUL policy situation resembles what the Busches described, a free consultation with a consumer rights lawyer or insurance bad faith attorney can help you assess whether your policy illustrations were realistic and whether you have a viable claim.

What Could Kyle Busch and Other IUL Policyholders Receive If They Pursue Their Own Claims?

The Busch settlement terms were confidential, so the exact recovery amount is unknown. The original lawsuit sought damages exceeding $8.5 million. In terms of what individual policyholders could seek in similar disputes:

What Could Misled IUL Policyholders Recover From a Future Claim?

Recoveries in IUL misrepresentation cases typically include the difference between what policyholders paid in premiums and what they actually received in cash value, plus consequential damages in some states. In May 2024, an Idaho jury ordered Pacific Life and an agent to pay more than $1.5 million to a retiree over a separate IUL claim — showing courts are willing to hold insurers and agents accountable when the evidence supports it.

No single formula predicts what any individual case could recover. Outcomes depend on the specific policy documents, the illustrations shown at sale, the agent’s communications, and state law. Speaking with an insurance bad faith attorney before accepting any policy surrender value or settlement offer from your insurer is strongly recommended.

What Should IUL Policyholders Do Right Now?

1. Understand you are not automatically part of this case. The Busch lawsuit was a private dispute, not a class action. No claim form exists, and no settlement fund is open to the public.
   
2. Pull your original policy illustrations. Compare the projected cash value shown when you purchased the policy against your most recent annual statement. A large gap between illustrated and actual values is the primary red flag in cases like this.
   
3. Request a current in-force illustration from your insurer. This document shows what your policy is projected to do under current assumptions. If it shows your policy lapsing or depleting significantly earlier than you expected, get legal advice before making any changes.
   
4. Save all communications with your agent. Emails, texts, meeting notes, and original sales materials can be critical evidence in any future dispute or complaint.
   
5. File a complaint with your state insurance commissioner. Every state has an insurance department that investigates consumer complaints against insurers and agents. This is free, creates a formal record, and puts your state regulator on notice.
   
6. Consult an attorney before surrendering or lapsing your policy. Surrendering a policy you believe was mis-sold could affect your ability to recover damages. Get independent legal advice first.

Kyle Busch Pacific Life Insurance Lawsuit Timeline

Milestone	Date
Buschs begin purchasing IUL policies from Rodney Smith / Pacific Life	2018
Final IUL policy purchased	2022
Kyle Busch notices unexpected sixth-year premium; begins investigating	2025 (pre-October)
Lawsuit filed in Lincoln County Superior Court, North Carolina	October 14, 2025
Case removed to U.S. District Court, W.D. North Carolina (No. 5:2025cv00195)	November 20, 2025
Amended complaint filed	January 2026
Pacific Life files motion to dismiss	Late January 2026
Court text-only order	January 26, 2026
Notice of confidential settlement filed	February 26, 2026
Dismissal paperwork to be filed	Within 30 days of February 26, 2026
Expected full case closure	TBD — pending final dismissal filing

Kyle Busch Pacific Life IUL Lawsuit — Frequently Asked Questions, No. 5:2025cv00195

1. Is there a class action lawsuit against Pacific Life over IUL policies right now? 

The Busch lawsuit (No. 5:2025cv00195, W.D. North Carolina) was a private civil case filed by Kyle and Samantha Busch individually — not a certified class action. It settled confidentially on February 26, 2026. Separate IUL-related litigation against Pacific Life and other carriers has occurred in other states, but no open, nationwide class action against Pacific Life over IUL policies is confirmed as of this article’s last update.

2. Do I need to do anything right now to be included in the Busch vs. Pacific Life case?

 No — and you cannot join it. The case was a private lawsuit that has already settled with confidential terms. There is no claim form and no public settlement fund. If you have your own IUL concern, you need to pursue your own complaint or legal action separately.

3. When will the Busch Pacific Life case formally close?

 The parties notified the court on February 26, 2026 that they intended to file a dismissal within 30 days. Final case closure depends on the court’s schedule after that filing is received.

4. Can I file my own lawsuit against Pacific Life for IUL misrepresentation instead of relying on this case? 

Yes — individual policyholders who believe they were misled can file their own civil complaint under their state’s consumer protection or insurance laws. The Busch case provides a useful roadmap of the types of allegations courts have been willing to consider in IUL disputes. Speaking with an insurance bad faith attorney in your state is the right starting point.

5. How will I find out if Pacific Life or my IUL insurer faces a class action in the future? 

Monitor your state insurance commissioner’s website and sign up for news alerts on your insurer’s name combined with terms like “class action” or “IUL lawsuit.” Your attorney can also monitor litigation developments relevant to your specific policy.

6. What does “indexed universal life” mean, and why is the Busch case significant?

 An IUL policy is a permanent life insurance product whose cash value grows based on the performance of a stock market index, with caps and floors on gains and losses. The Busch case is significant because it brought national attention to allegations that IUL products are routinely illustrated using projections that agents and insurers know are unlikely to materialize — a concern regulators and consumer advocates have raised for years.

7. What specific laws did Pacific Life allegedly violate in the Busch case?

 The complaint alleged violations of the North Carolina Unfair and Deceptive Trade Practices Act, along with claims of negligence and breach of fiduciary duty. These are state-law claims. Depending on your state, similar conduct could be actionable under your state’s insurance code, consumer protection statutes, or common law fraud principles.

8. How much could IUL policyholders who were misled recover from a future claim?

 No amount is predictable without reviewing your specific policy documents. The Busch family sought over $8.5 million based on $10.4 million in premiums paid. A 2024 Idaho jury awarded over $1.5 million in a separate Pacific Life IUL case. Individual recoveries depend on what was promised, what was delivered, and your state’s law. A consumer rights lawyer can give you a realistic assessment for your specific situation.

Sources Used in This Kyle Busch Pacific Life Insurance Article

• Court docket — Busch et al. v. Pacific Life Insurance Company et al., No. 5:2025cv00195, U.S. District Court, W.D. North Carolina: https://dockets.justia.com/docket/north-carolina/ncwdce/5:2025cv00195/121883
• Original complaint (PDF) — filed October 14, 2025, Lincoln County Superior Court: https://assets.alm.com/66/17/e58efb6649eea3ef09b2109e7313/kyle-busch-vs-pacific-life-complaint.pdf

Prepared by the AllAboutLawyer.com Editorial Team and reviewed for factual accuracy against official court records, the Justia docket for No. 5:2025cv00195, and InsuranceNewsNet reporting on May 25, 2026. Last Updated: May 25, 2026

This article is for informational purposes only and does not constitute legal advice. Laws vary by state and individual circumstances differ. For advice about your specific situation, consult a qualified attorney.