Pacific Life Insurance $33M PDX Policy Class Action Settlement

Individuals who purchased a Pacific Discovery Xelerator indexed universal life insurance policy issued by Pacific Life Insurance Co. in California may be eligible to receive benefits from a class action settlement.

Pacific Life Insurance Co. agreed to pay $33 million to settle a class action lawsuit alleging it used misleading marketing materials and illustrations to sell PDX policies in California between late 2016 and 2019.

Who are the class members?

The class includes individuals and legal entities who purchased a Pacific Discovery Xelerator indexed universal life insurance policy issued in California. Pacific Life Insurance offered the PDX policy for sale between late 2016 and 2019.

The policy cannot be a Pacific Discovery Xelerator IUL 2 (PDX 2) policy.

There are two main categories of class members based on the status of their policy:

• In-force policyholders: Those whose PDX policy is active (in-force) as of Oct. 31, 2025, and remains active through the date the settlement administrator distributes benefits
• Terminated policyholders: Those whose PDX policy was terminated (by surrender or lapse) as of Oct. 31, 2025, or is terminated before the distribution date

What can class members receive?

The amount each class member will receive depends on the status of their policy at key dates and the total number of eligible participants.

• In-force policyholders will receive an automatic credit to the accumulated value of their PDX policy’s fixed account if the policy remains active through the distribution date.
• The settlement administrator will distribute the total net settlement fund (after deductions for attorneys’ fees, expense and service awards) as a credit on a pro rata basis based on the total premiums the class member paid for each in-force policy compared to the total premiums all class members paid for in-force policies.

• Terminated policyholders are eligible to receive a three-year term life insurance policy at no cost provided the insured is still alive when they submit the application.
• The total aggregate face value of all term policies is capped at $25,000,000. Each class member’s term policy face value is calculated as (face amount of the class member's terminated policy / total face amount of all terminated policies) x $25,000,000

Class members whose policy is currently in-force but terminates before relief distribution you may still be eligible for term insurance relief. The settlement administrator will notify them if they are eligible.

Additional nonmonetary relief:

• Pacific Life agreed to manage the growth caps for PDX policies in line with similar indexed universal life insurance products for three years starting Nov. 1, 2025.
• The company will not change the current PDX product OBR used in the performance factor formula for three years from Nov. 1, 2025.

How to claim Pacific Life Insurance settlement benefits

• In-force policyholders do not need to take any action. If their policy remains active through the distribution date, Pacific Life will automatically apply their credit to their policy’s accumulated value.
• Terminated policyholders must submit a term insurance application to receive the three-year term life insurance benefit. They can do this online or by requesting a paper application by calling the settlement administrator at 1-833-754-9443. Class members should mail completed paper applications to the settlement administrator. The application deadline is April 10, 2026.

Settlement administrator's mailing address: Illustration Settlement, c/o Kroll Settlement Administration LLC, PO Box 225391, New York, NY 10150-5391

Required information

To complete the online term insurance application, class members must provide the unique ID from their settlement notice.

Payout options

• In-force policyholders: Credit applied directly to the policy’s accumulated value
• Terminated policyholders: Three-year term life insurance policy at no cost

$33 million settlement fund breakdown

The $33,000,000 million settlement fund covers:

• Attorneys’ fees: Up to $10,890,000
• Attorneys’ expenses: Up to $1,200,000
• Service award to class representative: Up to $25,000
• Payments to eligible class members: Remaining funds

Pacific Life will pay settlement administration costs and additional attorneys’ fees of up to $4,500,000 separately from the $33,000,000 fund.

Important dates

• Term insurance application deadline: April 10, 2026
• Opt-out deadline: April 10, 2026
• Final fairness hearing: May 7, 2026

When is the Pacific Life PDX policy settlement payout date?

The settlement administrator and Pacific Life will issue benefits approximately 60 days after the court resolves any appeals and grants final approval to the settlement.

Why did this class action settlement happen?

The class action lawsuit claimed Pacific Life Insurance Co. used misleading marketing materials and illustrations that inflated the projected profitability of its PDX policies and concealed hidden costs, which allegedly reduced the value of the policies.

Pacific Life denies any wrongdoing but agreed to settle to avoid the risks and expenses of further litigation.

Sources

1. Class notice.pdf)
2. Settlement agreement
3. Settlement FAQ