Company: SUND
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001641172-25-017143
Chunk: 116

Company: Sundance Strategies, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 1A
Chunk 116
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 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 it. If any of the entities providing services related to the life insurance
policies properly obtains and uses otherwise private health information, but fails to maintain the confidentiality of such information,
such service provider may receive complaints from the affected individuals, their families and relatives and, potentially, interested
regulatory authorities. Because of the uncertainty of applicable law, it is not possible to predict the outcome of such disputes.

20

Additionally,
it is possible that, due to a misunderstanding regarding the scope of consents that a service provider possesses, such service provider
may request and receive from health care providers information that it in fact did not have a right to request or receive. Once again,
if a service provider receives complaints for these acts, it is not possible to predict what the results will be. This uncertainty also
increases the likelihood that a service provider may sell, or cause to be sold, life insurance policies in violation of applicable law,
which could potentially result in additional costs related to defending claims or enduring regulatory inquiries, rescinding such transactions,
possible legal damages and penalties and probable reduced market value of the affected life insurance policies. Each of the foregoing
factors may delay or reduce the return on life insurance policies.

Cyber-attacks
or other security breaches could have a material adverse effect on our business.