NASCAR legend Kyle Busch and his wife allege Pacific Life misled them into buying risky life insurance plans, seeking damages over a claimed $8.5M loss.
LINCOLN COUNTY, N.C. — Pacific Life Insurance Company is asking a federal court to dismiss a lawsuit filed by NASCAR champion Kyle Busch and his wife, arguing the couple failed to state a valid claim in their allegations of being misled into purchasing complex life insurance policies.
In a motion filed Thursday, Pacific Life contends the Busches failed to fully fund their indexed universal life insurance policies and signed documents agreeing to the policy terms. The insurer also argues the lawsuit exceeds the three-year statute of limitations, noting it was filed seven years after the policies were initiated.
The motion to dismiss claims the Busches did not meet particularity requirements in their pleadings.
The Busches are seeking a 21-day extension until Feb. 26 to respond to the dismissal request, citing ongoing settlement negotiations. In an unopposed motion filed Monday, the plaintiffs said the parties have scheduled an in-person settlement conference for Feb. 2 following an initial remote conference on Jan. 8.
The two-time Cup Series champion and his wife allege they lost more than $8.5 million after being misled into purchasing life insurance policies marketed as safe retirement plans. They claim they paid over $10.4 million in premiums based on misleading illustrations and false promises of guaranteed returns.
According to the complaint originally filed in Lincoln County Court in October 2025, the Busches’ net out-of-pocket loss exceeds $8.58 million after accounting for the policies’ remaining cash value, which continues to erode due to rising costs. The lawsuit was moved to the U.S. District Court for the Western District of North Carolina in November.
The lawsuit accuses Pacific Life and agent Rodney A. Smith, operating through Red River LLC, of marketing indexed universal life policies as “tax-free retirement plans” using speculative projections that failed to disclose true risks and costs.
“I never thought something like this could happen to us,” Kyle Busch said when filing the lawsuit. “These policies were sold to us as part of a retirement plan — something safe and secure that would grow tax-free and protect our family long after racing.”
The Busches claim Pacific Life failed to properly supervise Smith despite an alleged disciplinary history and prioritized commissions over policyholder interests. The complaint alleges violations of North Carolina’s Unfair and Deceptive Trade Practices Act and seeks actual damages, consequential damages, treble damages, punitive damages and attorneys’ fees.
Robert Rikard, an attorney for the Busches, said the case reflects a broader national issue affecting everyday Americans.
“Across the country, teachers, small business owners, and retirees are being sold complex life-insurance contracts as if they were simple, risk-free retirement plans,” Rikard said. His firm has represented more than 400 clients in similar cases.
After the lawsuit was filed, Pacific Life told WCNC Charlotte it does not comment on individual matters but emphasized its nearly 160-year commitment to “fairness, integrity, and acting in the best interests of our clients.”
“Pacific Life offers several different life insurance products, each with unique characteristics that are important to understand before making a decision,” the company said.
Kyle Busch won NASCAR Cup Series championships in 2015 and 2019 and has 60 career victories, tied for ninth all-time. He currently drives the No. 8 Chevrolet for Richard Childress Racing.
The case is pending in the U.S. District Court for the Western District of North Carolina.