Rodney Smith, an insurance agent associated with the sale of Indexed Universal Life (IUL) insurance policies, is currently the subject of an active investigation by Robert Rikard of RP Legal LLC, lead counsel for Kyle Busch and Samantha Busch in federal litigation involving Pacific Life Insurance Company.
As detailed in a recently filed amended complaint in the Busch matter, the investigation into Rodney Smith extends beyond individual sales conduct and focuses on the design, replacement, and restructuring of IUL policies, including the use of internal 1035 exchanges that allegedly reset commissions and fees while presenting the transaction as a policy improvement.
Rodney Smith and 1035 Exchange Churning Allegations
The Busch complaint alleges that Rodney Smith utilized internal 1035 exchanges to replace existing Indexed Universal Life policies with new policies issued by the same carrier. These exchanges were allegedly structured to restart compensation and internal production credit, even where the original policy had already generated substantial commissions and bonuses within the carrier’s distribution system.
Based on information uncovered in the Busch litigation, Robert Rikard and RP Legal LLC are now investigating whether Rodney Smith engaged in similar 1035 exchange practices with other customers nationwide, particularly where replacement policies were sold as upgrades or fixes without clear disclosure of the economic impact.
Policy Design Issues Linked to Rodney Smith IUL Sales
The investigation also focuses on policy designs commonly associated with Rodney Smith and Pacific Life IUL sales, including:
- Heavy reliance on 100% base coverage
- Use of Increasing Death Benefit options
- Suppression of renewable term coverage
- Designs that materially increase Target Premium and early policy charges
These design choices are widely understood within the insurance industry to increase agent compensation while often producing poor accumulation and long-term outcomes for policyholders.
Why Rodney Smith IUL Policyholders Should Seek Review
Many consumers who purchased Indexed Universal Life policies sold by Rodney Smith were told the policies would function as retirement strategies, self-fund after a limited number of payments, or improve through internal replacements. In many cases, policyholders do not discover the true costs, risks, and performance issues until years later, when policy value has already been consumed by internal charges.
If you purchased an Indexed Universal Life policy sold by Rodney Smith, were advised to complete a 1035 exchange, or were told a replacement policy would improve or fix an existing policy, your situation may warrant independent legal review.
About Robert Rikard and RP Legal LLC
Robert Rikard of RP Legal LLC is a national trial attorney and the lead counsel for the Busches in ongoing federal litigation involving Indexed Universal Life insurance. RP Legal LLC focuses on complex insurance and financial product cases, including IUL, premium financing, 401k rollovers, and other complex IUL product cases.
Policy reviews are confidential, and there is no obligation to proceed.
Learn more or request a policy review through The Investor Law Center.