Company: SUND
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001641172-25-017143
Chunk: 115

Company: Sundance Strategies, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 1A
Chunk 115
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 of more than two years is
referred to as a “life settlement.” The Holders have not, and do not intend to, purchase viatical settlements and should
not be subject to the regulatory regimes that govern these policies. However, the states vary in their technical definitions of viatical
settlements and life settlements, and state insurance regulators, who are charged with interpretation and administration of insurance
laws and regulations, vary in their interpretations. Therefore, despite expectations, it may be possible that under the rules of a particular
state, a policy that is not commonly thought of as a viatical settlement may meet the technical definition thereof. Engaging in the purchase
or sale of life settlements or viatical settlements in violation of applicable regulatory regimes could result in fines, administrative
and civil sanctions and, in some instances, criminal sanctions. United States and state securities laws could have an adverse effect
on the Holders’ ability to liquidate any policies we or they believe should be sold.

It
is possible that, depending on the facts and circumstances attending a particular sale of a life insurance policy, a sale could implicate
state and federal securities laws. The failure to comply with applicable securities laws in connection with dealings in life settlement
transactions could result in fines, administrative and civil sanctions and, in some instances, criminal sanctions. In addition, parties
may be entitled to a remedy of rescission regarding such transactions. State guaranteed funds give some protection for payments under
life insurance policies, but no assurance can be given that we will benefit from them.

State
protections for the insolvency of an insurance company are limited.

With
respect to the life insurance policies, the payment of death benefits by issuing insurance companies is supported by state regulated
reserves held by the issuing insurance companies and, under certain circumstances and in limited amounts that vary from state to state,
state-supported life and health insurance guaranty associations or funds. However, such reserves and guaranty funds, to the extent in
existence, may be insufficient to pay all death benefits under the life insurance policies issued by an issuing insurance company if
such issuing insurance company becomes insolvent. Even if such guaranty funds are sufficient, the obligation of a state guaranty fund
to make payments may not be triggered in certain circumstances.

The
benefits of most or all of such state supported guaranty funds are capped per insured life (irrespective of the number of policies issued
and outstanding on the life of such individual), which caps