Company: SUND
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001641172-25-017143
Chunk: 29

Company: Sundance Strategies, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 1
Chunk 29
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 individuals. The servicer also subscribes to death notification
services which use Social Security and public records information to notify the servicer if an insured has passed away so that it can
begin the process of obtaining a death certificate and arranging for the payout of the policy. Changes to the Social Security Administration’s
Death Master File have resulted in the elimination of many state records that were previously included in the Death Master File. The
number of new records being added to the Death Master File has been reduced by approximately 40%. Thus, it has become necessary to enhance
alternative methods for learning of an insured’s death. On average, it now takes longer to learn about an insured’s death
as compared to periods prior to the changes in the Death Master File.

Despite
these various tracking methods, it is still possible for the Holder to lose contact with an insured, making any additional updates of
the insured’s medical condition impossible. There can also be no assurance that the Holder will learn of an insured’s death
on a timely basis. Delays in receiving insurance proceeds result in a decrease in the death benefit.

Lost
insureds can result in a delay or a loss of an insurance benefit that would have a negative effect on revenues and prospects.

Occasionally,
the issuing insurance company may encounter (or 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