Company: NODK
Filing Date: 2025-03-07
Form Type: 10-K
Source: 0001174947-25-000304
Chunk: 11

Company: NI Holdings, Inc.
Filing Date: 2025-03-07
Form: 10-K
Item: Item 1
Chunk 11
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program to be an integral part of managing our business and a key element in our approach to corporate governance. Our Enterprise Risk
Management Committee (the “ERMC”) is responsible for the alignment of operational risk management strategies as the coordination
point for enterprise-level direction setting with regard to risk management issues. The multi-disciplinary ERMC regularly monitors risk
reports and metrics regarding a variety of continuing and emerging risks that may adversely affect the Company, its shareholders, its
policyholders, or other stakeholders. The Audit Committee of the Board of Directors oversees risk management and regularly receives reports
from the ERMC.

Reinsurance

We cede and assume certain premiums and losses to and from various
companies and associations under a variety of reinsurance agreements. We seek to limit the maximum net loss that can arise from large
risks or risks in concentrated areas of exposure through use of these agreements, either on an automatic basis under general reinsurance
contracts known as treaties or through facultative contracts on substantial individual risks.

Reinsurance contracts do not relieve us from our obligation to policyholders.
Additionally, failure of reinsurers to honor their obligations could result in significant losses to us. There can be no assurance that
reinsurance will continue to be available to us to the same extent, and at the same cost, as it has in the past. We may choose in the
future to reevaluate the use of reinsurance to increase or decrease the amounts of risk ceded to reinsurers.

For additional information, see Part II, Item 8, Note 6 “Reinsurance.”

Unpaid Losses and Loss Adjustment Expenses

We maintain reserves for unpaid losses and loss adjustment expenses.
Our liability for unpaid losses and loss adjustment expenses consists of (1) case reserves, which are reserves for claims that have been
reported to us, and (2) reserves for claims that have been incurred but not yet been reported and for the future development of case reserves
(“IBNR”). We determine a provision for the ultimate cost of those claims without regard to how long it takes to settle them
or the time value of money. The determination of reserves involves actuarial and statistical projections of what we expect to be the cost
of the ultimate settlement and administration of such claims. The liability for unpaid losses and loss adjustment expenses is set based
on facts and circumstances then known, estimates of future trends in claims severity, and other variable factors such as inflation and
changing judicial theories of liability. Our liability for unpaid losses and loss adjustment expenses is not discounted.

For