Company: SUND
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001641172-25-017143
Chunk: 114

Company: Sundance Strategies, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 1A
Chunk 114
---
 assert) situations where the body of the insured or reasonable other evidence of death
cannot be located and/or identified. For example, the insured may have been lost at sea and there may not be proof of death available
for several years or at all. Alternatively, the fact that the original beneficiaries no longer have any financial interest in a claim
under the policy may mean that the issuing insurance company faces practical obstructions to recording accurately and in a timely manner
the death of the insured. In the event of a “lost” insured, the death claim may be delayed for up to seven years by the issuing
insurance company. Under these circumstances, typically, the claim will then be paid with interest from the date that the insured was
originally presumed lost. Nonetheless, it remains possible that it will be difficult or impossible to locate and/or identify an insured
to establish proof of death and, as a result, the related issuing insurance company may significantly delay (but not ultimately avoid)
payment of the underlying death benefit. This delay could result in a longer than anticipated holding period for a policy which, in turn,
could result in a loss.

The
death of an insured must have occurred to permit the servicer to file a claim with the issuing insurance company for the death benefit.
Obtaining actual knowledge of death of an insured, as discussed above, may prove difficult and time-consuming due to the need to comply
with applicable law regarding the contacting of the insured’s family to ascertain the fact of death and to obtain a copy of the
death certificate or other necessary documents in order to file the claim. The death benefit typically increases subsequent to death
by an interest rate that is less than the interest rate under the senior loan; thus, the policy proceeds become less valuable as time
passes.

19

U.S.
life settlement and viatical regulations may result in determination(s) of applicable law violations.

The
purchase and sale of insurance policies in the secondary market from the policy’s original owner and among secondary market participants
is subject to regulation in approximately 45 states and Puerto Rico. The scope of the regulations and the consequences of their violation
vary from state to state. In addition, within a given state, the regulations may vary based upon the life expectancy of the insured at
the time of sale or purchase. In many states, a policy on an insured with a life expectancy of two years or less is referred to as a
“viatical settlement” or a “viatical.” A policy on an insured with a life expectancy