Company: NODK
Filing Date: 2025-03-07
Form Type: 10-K
Source: 0001174947-25-000304
Chunk: 716

Company: NI Holdings, Inc.
Filing Date: 2025-03-07
Form: 10-K
Item: Item 1C
Chunk 716
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, which usually begins in spring and ends with harvest in the fall. Under the federal
crop insurance program, farmers must purchase crop insurance with respect to spring planted crops by March 15. By July 15, the farmer
must report the number of acres planted in each crop. On September 1, the insurer bills the farmer for the insurance premium, which is
due and payable by the farmer by October 1. If the farmer does not pay the premium by such date, the insurer will charge interest at a
rate of 15% because the insurer is required to pay the farmer’s portion of the premium to the FCIC by November 15, regardless of
whether the farmer pays the premium to the insurer. Except for claims occurring in the spring (primarily for prevented planting and required
replanting claims), claims are required to be filed with the FCIC by December 15. A different cycle exists for crops planted in the fall,
such as winter wheat, but the vast majority of crop insurance we write covers crops planted in the spring.

Net Investment Income and Net Investment
Gains (Losses)

We invest our excess cash in fixed income and equity securities.
Investment income includes interest and dividends earned on invested assets and is reported net of investment-related expenses. Net investment
gains (losses) are reported separately from net investment income. We recognize realized gains when investments are sold for an amount
greater than their cost or amortized cost (in the case of fixed income securities) and realized losses when investments are sold for an
amount less than their cost or amortized cost or when credit impairments are recorded, as applicable. We recognize changes in unrealized
gains and losses of equity securities in net income as part of net investment gains (losses). These gains and losses may be significant
given the fair market value of the equity portfolio and the inherent volatility in equity markets. The changes in unrealized gains and
losses on fixed income securities are recorded in other comprehensive income (loss), net of income taxes. Therefore, these changes have
no impact on net income but do impact shareholders’ equity.

The portfolio of investments for NI Holdings and its insurance subsidiaries
is managed by Conning, Inc., which has discretion to buy and sell securities in accordance with the investment policy approved by our
Board of Directors.

Principal Expense Items

Our expenses consist primarily of losses and loss adjustment expenses,
amortization of deferred policy acquisition costs, other underwriting and general expenses, and income taxes.

Loss