Company: SUND
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001641172-25-017143
Chunk: 106

Company: Sundance Strategies, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 1A
Chunk 106
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 affection or due to certain recognized economic relationships. Typically this
includes the insured, the insured’s spouse and children, and in some states, other close relatives. In some jurisdictions, however,
this could also include entities such as the insured’s creditors, employer, business partners or certain charitable institutions.
It also typically includes a trust that owns a life insurance policy insuring the life of the grantor or settlor of the trust where the
beneficiaries of the trust are persons, who, by virtue of certain familial relationships with the grantor or settlor, also have an insurable
interest in the life of the insured.

15

A
policy purchased by a person without an insurable interest may, depending on relevant state insurance law, be (i) void, (ii) voidable
by the insurer that issued the policy and/or (iii) subject to the claims of the insured’s presumptive beneficiaries, such as his
or her spouse or other family members. In some states, the insured must consent to the purchase of a policy by a person other than the
insured.

Generally,
state insurance law is clear that an individual has an insurable interest in his or her own life and may procure life insurance on his
or her own life and may name any person as beneficiary. However, if a person purchases insurance on his or her own life for the benefit
of a party who does not have an insurable interest in the life of the insured for the purpose of evading the insurable interest laws,
the purchase may be viewed under applicable state law as a violation of the state’s insurable interest laws. Should the issuer
own an interest in a policy that was originally issued to an owner or for the benefit of a beneficiary (if required) that did not have
an insurable interest, it is possible that the issuer may not have a valid claim for the death benefits on such policy, and upon the
death of the insured, the issuing insurance company may refuse to pay the death benefits on the policy to us or may be required to pay
the death benefit to other beneficiaries of the insured. Should any such claims be successful in relation to the policies underlying
NIBs, we could lose some or all the amounts we have invested in NIBs, although in some states the issuing insurance company may be required
to repay the premiums if it rescinds the policy. Some states, such as New Jersey, allow the carrier to retain all the premiums in the
event the policy is rescinded,