Lauren Scruggs -- the model who suffered gruesome injuries in an airplane propeller accident last year -- is halting all legal action after agreeing to a settlement with the pilot's insurance company.
Scruggs had gone to battle with Aggressive Insurance Services because she felt entitled to more than a $200,000 settlement ... the most the company claimed it could give to a "passenger."
Scruggs had argued that she wasn't technically a passenger when the accident occurred because she had already departed the aircraft when she was struck by the plane's propeller ... losing a hand and an eye.
Now, both Scruggs and A.I.S. have jointly announced they have reached a settlement ... but the terms are confidential. We're guessing it's a helluva lot more than $200k.