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

Company: Sundance Strategies, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 1
Chunk 30
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 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 of more than two years is
referred to as a “life settlement.” The Holders have not, and do not intend to, purchase viatical settlements and should
not be subject to the regulatory regimes that govern these policies. However, the states vary in their technical definitions of viatical
settlements and life settlements, and state insurance regulators, who are charged with interpretation and administration of insurance
laws and regulations, vary in their interpretations. Therefore, despite expectations, it may be possible that under the rules of a particular
state, a policy that is not commonly thought of as a viatical settlement may meet the technical definition thereof. Engaging in the purchase
or sale of life settlements or viatical settlements in violation of applicable regulatory regimes could result in fines, administrative
and civil sanctions and, in some instances, criminal sanctions. United States and state securities laws could have an adverse effect
on the Holders’ ability to liquidate any policies we or they believe should be sold.

It
is possible that, depending on the facts and circumstances attending a particular sale of a life insurance policy, a sale could implicate
state and federal securities laws. The failure to comply with applicable securities laws in connection with dealings in life