Is that a thing?
February 25, 2026 by Sheryl J. Moore
I have to tell you…I’ve never heard of an insurance company informing policyholders that their agent has been terminated.
Is that a thing?
InsuranceNewsNet reports-
“A newly filed lawsuit in South Carolina alleges that Pacific Life continued accepting more than $1 million in premium payments tied to indexed universal life policies after terminating the agents who sold the policies, without informing the policyholders of those terminations.”
(No, this is not the Busch case; it is a new one.)
Legal counsel for the prosecution suggests-
“You cannot cut off the architects of the strategy and keep collecting the money without telling the people whose retirement is on the line.”
This doesn’t help-
“At the center of the case is a strategy marketed as ‘Retirement Approach No Tax,’ or RANT, which allegedly encouraged the plaintiffs to liquidate about $1.7 million from qualified 401(k) retirement accounts and move the funds into IUL policies.”
“The complaint alleges that the liquidation triggered substantial and irreversible tax liabilities, along with collateral effects on Social Security and Medicare calculations. The plaintiffs claim they were told the IUL policies would generate projected ‘tax-free’ retirement income through policy loans, enhanced market participation and downside protection.”
“Instead, the lawsuit alleges the strategy exposed them to immediate tax acceleration, internal policy charges, carrier-controlled cap reductions and reliance on non-guaranteed illustrated assumptions that materially affected long-term performance.”
“The complaint further alleges that the tax liability created by the liquidation was financed through borrowing, compounding the plaintiffs’ financial exposure.” -sjm
Read more here- IUL tax strategy at center of new lawsuit filed in South Carolina
