Company: SUND
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001641172-25-017143
Chunk: 28

Company: Sundance Strategies, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 1
Chunk 28
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 credit risk associated with the viability of the various insurance companies that issued the life insurance policies.
The insolvency of an issuing insurance company or a downgrade in the ratings of an issuing insurance company could have a material adverse
impact on the value of a policy issued by such issuing insurance company, as the collectability of the related death benefits and the
ability of such issuing insurance company to pay the cash surrender value or other amounts agreed to be paid by the issuing insurance
company may be reduced. Any such impairment of the claims-paying ability of the issuing insurance company could materially and adversely
affect the value of the policies issued by such insurance company, the ability of the Holder to pay the premiums due on other insurance
policies and the Holders ability to pay any required policy premiums, fees and expenses of the service providers and our other expenses,
which could materially and adversely affect the value of a policy.

18

The
inability to keep track of the insureds could keep us from updating the medical records of the insured.

It
is important for the Holder of the life insurance policies to track the health status of an insured and keep information current, which
is done by contacting the insured and/or other designated persons and obtaining updated medical records from an insured’s physician.
There are significant U.S. federal and state laws relating to privacy of personal information that affect the operations of the servicer
and its ability to properly service the policies, especially with regard to obtaining current information from an insured’s physician.

Under
the Health Insurance Portability and Accountability Act or HIPAA, the federal law that governs the release of medical records from medical
record custodians, an insured may revoke his or her authorization for previously authorized third parties to receive medical records
at any time, leaving the Holder unable to receive additional medical records.

The
Holder may have to rely on a third-party servicer to track an insured, especially if states continue to adopt laws that would limit the
ability of a person other than a licensed life settlement provider or its authorized representative to contact insureds for tracking
purposes and the servicer may lose contact with such insured. For example, the insured may move and not notify the servicer or any other
third party that has authority to contact the insured. The servicer attempts to maintain contact information for the insured and/or one
or more close family friends or relatives whenever possible so it can maintain contact with the insured. Additionally, the servicer subscribes
to various databases that use public records and other information to track