Indexed universal life insurance is already one of the most complex and misunderstood financial products sold to consumers. Now Pacific Life is paying $58.3 million to resolve a class action lawsuit alleging that the sales illustrations were misleading: they showed inflated expectations that led policyholders to purchase a product that did not perform as advertised.
The case, Mamboleo v. Pacific Life Insurance Company (Case No. 30-2021-01208045-CU-BT-CXC), was filed in the Orange County Superior Court in California. It focuses on Pacific Life’s Pacific Discovery Xelerator (PDX) indexed universal life (IUL) insurance policies sold in California between late 2016 and 2019.
Plaintiff Abigail Mamboleo and other members of the class alleged that Pacific Life’s marketing materials and policy illustrations showed unrealistically rosy financial projections – hiding risks and exaggerating benefits, while “hidden fees, excessive charges on capped commissions, leveraged index features and misleading illustrations caused the policies to collapse.”
What are ‘misleading illustrations’?
When insurance agents sell indexed universal life insurance, they use computer-generated “illustrations” that show how a policy might perform over time. These projections show hypothetical growth, cash value accumulation, and premium levels necessary to keep the policy in effect.
The claim: Pacific Life’s illustrations showed “inflated profitability” that made PDX policies appear more valuable than they were. The hidden fees would be structured in a way that “essentially eliminates” policy value over time, leaving policyholders to pay for a policy that was quietly collapsing.
The Reality of IUL Policy: Indexed universal life insurance is a legitimate product, but it is also widely criticized for being oversold. The interplay of policy costs, the cost of insurance costs that increase with age, and interest credit limits make IUL performance highly sensitive to assumptions in illustrations. When illustrations use aggressive assumptions, real-world performance can fall dramatically short.
This case is not an isolated case. Multiple claimants have alleged similar problems with Pacific Life’s PDX illustrations. The complaints reflect a broader industry problem: IUL illustrations showing near-maximum historical returns that may never materialize in the real world.
What the settlement yields
The $58.3 million settlement provides two different types of relief, depending on whether your PDX policy is still active or has been terminated:
Valid policyholders
- Receive credits added directly to your policy’s accumulated cash value
- The credit amount is calculated based on your premium ratio compared to the total class premiums. The more you have paid, the better your credit
- No claim form is required other than confirming eligibility
Terminated policyholders
- Qualify for up to $25 million in term life insurance for three years
- This is replacement coverage, not a cash payment
- To receive this benefit, you must submit a claim form
Note on terminated policyholders: The relief for terminated policies is term life insurance coverage – no out-of-pocket payment. If your PDX policy has expired or been surrendered, the settlement provides replacement coverage in lieu of immediate monetary compensation. Review the settlement terms carefully to understand what this means for your situation.
Important deadlines
April 102026 — Deadline for filing claims
April 102026 — Deadline for objection/exclusion
May 72026 — Final approval hearing
Who is eligible
- You have purchased a Pacific Discovery Xelerator (PDX) indexed universal life insurance policy
- The policy is issued in California
- You purchased the policy between 2016 and 2019
- Both individuals and legal entities (trusts, LLCs) that owned PDX policies are eligible
- Policyholders who purchased PDX outside of California are not covered by this settlement
- Purchases before 2016 or after 2019 are not included
How to make a claim
- Visit the settlement website: IllustrationSettlement.com
- Contact the Settlement Administrator: Kroll Settlement Administration LLC at 833-754-9443
- No proof of purchase is required; only proof that you purchased the policy during the eligible period
- File by April 10, 2026
Insurance illustrations are projections, not promises, but when they are based on assumptions that rarely materialize, they become a sales tool that misleads rather than informs. That is the core of what this settlement is about.–Steve Rhode
Key Takeaways
- $58.3 Million Settlement Over Pacific Life’s Alleged Use of Deceptive Illustrations to Sell PDX-Indexed Universal Life Insurance Policies in California
- Eligible: California PDX policyholders purchased 2016–2019
- Valid policies receive cash value credits; terminated policies get up to $25 million in lifetime coverage over 3 years
- Term: April 10, 2026 submit or unsubscribe
- File at IllustrationSettlement.com or call Kroll at 833-754-9443
Frequently asked questions
Who is eligible for the Pacific Life PDX settlement?
Anyone who purchased a Pacific Discovery Xelerator (PDX) indexed universal life insurance policy issued in California between 2016 and 2019 is eligible. Both individual policy owners and legal entities such as trusts and LLCs that owned PDX policies are included in this class.
How much will I receive from the Pacific Life settlement?
If your PDX policy is still in force, you will receive a credit that will be added to the accrued cash value of your policy. The amount of credit is proportional to the premiums you have paid in relation to the total class premiums. The more you have paid, the better your credit. If your policy is terminated, you may be eligible for up to $25 million in term life insurance over three years. This is cover, not cash.
What were the ‘misleading illustrations’ that Pacific Life allegedly used?
The lawsuit alleges that Pacific Life used policy illustrations that showed inflated projections of how PDX policies would perform – making them appear more profitable than they actually were. These computer-generated projections allegedly hid hidden costs and fees that reduced or eliminated the policy’s accumulated value over time.
What is the claim deadline for the Pacific Life settlement?
The deadline for filing a claim is April 10, 2026. This is also the exclusion and objection period. The final approval hearing is scheduled for May 7, 2026. If you miss the deadline, you will forfeit your right to any settlement benefits.
Where can I file a Pacific Life settlement claim?
Submit your claim on the official settlement website, IllustrationSettlement.com. You may also contact the settlement administrator, Kroll Settlement Administration LLC, at 833-754-9443 for assistance with your claim.
Sources: Top class actions; Top Class Actions – Original Litigation Coverage
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