Company: SUND
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001641172-25-017143
Chunk: 113

Company: Sundance Strategies, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 1A
Chunk 113
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 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 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