Company: SUND
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001641172-25-017143
Chunk: 21

Company: Sundance Strategies, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 1
Chunk 21
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, and any such life insurance
policy may decline in value. Consequently, there can be no assurance that, to the extent we invest in NIBs, we will realize a positive
return on our investment. These types of investments should be considered to be highly speculative in nature. This, in turn, may directly
affect the amount and timing of funding sought or received by us, which in turn will affect our ability to conduct our business. Thus,
an investment in our Company is suitable only for investors having substantial financial resources, a clear understanding of the risk
factors associated with such investments and the ability to withstand the potential loss of their entire investment.

Risks
Related to the Life Insurance Policies

Policies
may be determined to have been issued without an “insurable interest” and could be void or voidable.

State
insurance laws in the United States require that an insurance policy may only be initially procured by a person that has an insurable
interest in the continuance of the life of the insured. Whether an owner has an insurable interest in the insured is a question of applicable
state law. The general concept is that a person with an insurable interest is a person that has a continuing interest in the insured
remaining alive, whether through the bonds of love and affection or due to certain recognized economic relationships. Typically this
includes the insured, the insured’s spouse and children, and in some states, other close relatives. In some jurisdictions, however,
this could also include entities such as the insured’s creditors, employer, business partners or certain charitable institutions.
It also typically includes a trust that owns a life insurance policy insuring the life of the grantor or settlor of the trust where the
beneficiaries of the trust are persons, who, by virtue of certain familial relationships with the grantor or settlor, also have an insurable
interest in the life of the insured.

15

A
policy purchased by a person without an insurable interest may, depending on relevant state insurance law, be (i) void, (ii) voidable
by the insurer that issued the policy and/or (iii) subject to the claims of the insured’s presumptive beneficiaries, such as his
or her spouse or other family members. In some states, the insured must consent to the purchase of a policy by a person other than the
insured.

Generally,
state insurance law is clear that an individual has an insurable interest in his or her own life and may procure life insurance on