Company: SUND
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001641172-25-017143
Chunk: 100

Company: Sundance Strategies, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 1A
Chunk 100
---
 are:

    ●
    the
    experience and qualifications of the medical professional or life expectancy company providing the life expectancy estimate;

    ●
    the
    completeness and accuracy of medical records received by the life expectancy company;

    ●
    the
    reliability of, and revisions to, actuarial tables or other mortality data published by public and private organizations or developed
    by a life expectancy company and utilized by its medical professionals;

    ●
    the
    nature of any illness or health conditions of the insured disclosed or undisclosed;

    ●
    changes
    in living habits and lifestyle of an insured and medical treatments, medications and therapies available to and used by an insured;
    and

    ●
    future
    improvements in medical treatments and cures, and the quality of medical care the insured receives.

We
rely primarily on various different life expectancy providers. A life expectancy (“LE”), can be considered the life expectancy
provider’s “best estimate” as to how long a person would live. We assume that the life expectancies were accurately
calculated and properly assessed for purposes of our model. To introduce some “checks and balances” into our cash flow projections,
we use at least two LE reports from different third-party LE providers for each policy. We do this to try to avoid any systemic bias
introduced by dependency on life expectancies produced by a single source. In addition, our model gives greater weight to the longer
(and more conservative) of the two LEs. By using such a long/short weighted average, our model attempts to hedge against unexpected longevities
in a portfolio.

Changes
in actuarial based life expectancy methodologies (which are determined by the Society of Actuaries and are amended every three to five
years) could have the effect of reducing the internal rate of return on the life insurance policies and could cause increased difficulty
in financing premiums. If changes are significant, they could lower prices for life insurance policies, but could also lower the value
of the life insurance policies due to the lower resulting present value of the death benefits forecasted to be paid at later dates. Holders’
senior loans require that certain loan to value ratios be maintained and decreases in policy values could result in violations of these
provisions. Default by Holders on their senior loans may impair their ability to obtain financing necessary to maintain the life insurance
policies.

In
addition, because our cash flow is usually dependent on life insurance policies coming to maturity,