$8.6m insurance lawsuit raises consumer protection questions

Complex life insurance products and a fragmented oversight regime highlight structural risks for policyholders.

In October, NASCAR champion Kyle Busch and his wife sued North Pacific Life Insurance Company in North Carolina over more than $8.6m in losses tied to their purchase of Indexed Universal Life (IUL) policies, bringing the industry’s structural consumer protection vulnerabilities and regulatory fragmentation into focus.

IULs, with their

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