Former NASCAR champion Kyle Busch settles $8.5M lawsuit against life … — and more

CHARLOTTE, N.C. (AP) — Two-time NASCAR champion Kyle Busch and a life insurance company have settled an $8.5 million lawsuit in which the driver said he was misled into purchasing policies marketed as safe retirement plans.

Kyle and Samantha Busch reached an out-of-court settlement with Pacific Life Insurance Company, according to a Feb. 26 court filing. Terms were confidential.

“Both sides worked constructively to achieve a confidential result that is mutually acceptable and avoids further legal proceedings," Pacific Life said in a statement.

The Busches sued Pacific Life last October, claiming they lost more than $8.5 million after being misled into purchasing life insurance policies. They claim they paid over $10.4 million in premiums based on misleading illustrations and false promises of guaranteed returns.

The lawsuit accused Pacific Life and one of its agents of marketing indexed universal life policies as “tax-free retirement plans” using speculative projections that failed to disclose true risks and costs. The complaint claimed the company prioritized commissions over policyholder interests and violated North Carolina’s Unfair and Deceptive Trade Practices Act.

Pacific Life filed for dismissal in January, contending the Busches failed to fully fund their policies and signed documents agreeing to the terms. The company also argued the lawsuit exceeds the three-year statute of limitations, noting it was filed seven years after the policies were initiated.

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