Pacific Life Insurance Company on Thursday asked a federal court to dismiss the $8.5 million lawsuit filed by NASCAR champion Kyle Busch and his wife over policies the Buschs claim were sold to them under false and negligent representations as tax-free income for retirement.
The filing in the Western District of North Carolina — the same court that just heard the Michael Jordan-led antitrust suit against NASCAR — alleges the Buschs purchased five separate Indexed Universal Life policies between 2018 and 2022 to provide more than $90 million in insurance protection for the two-time NASCAR champion.
The IUL policies were intended to provide immediate death benefit protection and “the opportunity to accumulate cash values when the policies are held for the long term.”
Pacific Life claims Busch failed to fully fund the policies, let some lapse and surrendered the others. Busch has claimed he is out $10.4 million and filed suit in October alleging Pacific Life failed to reveal the true risks of the policies.
Pacific Life countered in its request to have the suit dismissed that both Buschs signed multiple documents acknowledging they understood the policies, including one that indicated the couple would pay planned premiums and hold the policies over 30 years through age 70 and beyond.
— Associated Press —