Company: SUND
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001641172-25-017143
Chunk: 31

Company: Sundance Strategies, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 1
Chunk 31
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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 are generally less than the net death benefits of the insurance policies.
Guaranty fund laws often include aggregate limits payable with respect to any one life across different types of insurance policies,
generally $300,000 to $500,000 depending on the state. Most state guaranty funds are statutorily created and the legislatures may amend
or repeal the laws that govern them. In addition, most state guaranty fund laws were enacted with the stated goal of assisting policy
holders resident in such states. Therefore, non-resident policyholders, beneficiaries, and claimants may not be covered or may be covered
only in limited circumstances. As a result, state guaranty funds will likely provide little protection to us in the event of the insolvency
of an issuing insurance company. In addition, in the event of an issuing insurance company’s insolvency, courts and receivers may
impose moratoriums or delays on payments of cash surrender values and/or death benefits.

Liability
for failing to comply with U.S. privacy safeguards.

Both
federal and state statutes safeguard an insured’s private health information. In addition, insureds frequently have an expectation
of confidentiality even if they are not legally entitled to