Company: SDAWW
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036086
Chunk: 32

Company: SunCar Technology Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 32
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ifying material information in relation to insurance contracts;                                                                                               
  fabricating or altering insurance contracts without authorization from relevant parties, selling false policies, or providing false documents on behalf of the applicants;  
  falsifying auto eInsurance business or fraudulently returning insurance policies to obtain commissions;                                                                     
  colluding with applicants, insureds, or beneficiaries to obtain insurance benefits;                                                                                         
  engaging in false or falsified claims; or                                                                                                                                   
  otherwise not complying with laws and regulations or our control policies, procedures, and undertakings.                                                                    

On April 24, 2015, the PRC
Insurance Law was amended and consequently on February 1, 2018, the CBIRC amended the Provisions on the Supervision of Insurance Brokerages
and the Provisions on the Supervision of Insurance Claims Adjusting Firms. Furthermore, on November 12, 2020, the CBIRC promulgated the
Regulatory Provisions on Insurance Agents, which became effective 1 January 2021, repealing the Provisions on the Supervision of Professional
Insurance Agencies. These amendments have made a number of significant changes to the regulatory regime, including eliminating the requirement
for insurance agent to obtain a qualification certificate issued by the CBIRC. The elimination of the certificate requirement may result
in an increase in misconduct by persons engaged in promoting insurance products, in particularly sales misrepresentation. We have set
up in contractual terms to deter misconduct by external sales representatives and referral sources. However, the measures and precautions
we take to prevent and detect these activities may not be effective in all cases, and even effective, may be delayed under certain circumstances.
We cannot assure you, therefore, that misconduct by any of the external sales representatives or our external referral sources may not
occur, whether unintentional or otherwise, which may negatively impact our business, results of operations or financial condition. In
addition, the general increase in misconduct in the industry could potentially harm the reputation of the industry and have an adverse
impact on our business.

Examinations and investigations by the PRC
regulatory authorities may result in fines and/or other penalties that may have a material adverse effect on our reputation, business,
results of operations and financial condition.

From time to time, the CBIRC
carries out comprehensive evaluations and inspections of the internal control and financial and operational compliance of PRC auto eInsurance
companies in China. As a participant in the auto eInsurance industry in China, we are subject to periodic or ad