Company: NODK
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0001174947-25-000721
Chunk: 96

Company: NI Holdings, Inc.
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 8
Chunk 96
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 the securities’ relationship to other benchmark quoted prices.

    Level 3:
    Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported with little or no market activity).

13 

The Company bases its fair values on the price that would be received
to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. It is
our policy to maximize the use of observable inputs and minimize the use of unobservable inputs when developing fair value measurements,
in accordance with the fair value hierarchy. Fair value measurements for assets where there exists limited or no observable market data
and, therefore, are based primarily upon the estimates of the Company or other third-parties, are often calculated based on the characteristics
of the asset, the economic and competitive environment, and other such factors. Management uses its best judgment in estimating the fair
value of the Company’s financial instruments; however, there are inherent limitations in any estimation technique. Therefore, for
substantially all financial instruments, the fair value estimates herein are not necessarily indicative of the amounts which could have
been realized in a sale transaction on the dates indicated. The estimated fair value amounts have been measured as of their respective
period-end and have not been re-evaluated or updated for purposes of our consolidated financial statements subsequent to those respective
dates. As such, the estimated fair values of these financial instruments subsequent to the respective reporting dates may be different
than the amounts reported at each period-end. Additionally, changes in the underlying assumptions used, including discount rates and estimates
of future cash flows, could significantly affect the results of current or future valuations.

The Company uses quoted values and other data provided by an independent
pricing service in its process for determining fair values of its investments. The evaluations of such pricing services represent an exit
price and a good faith opinion as to what a buyer in the marketplace would pay for a security in a current sale. This pricing service
provides us with one quote per instrument. For fixed income securities that have quoted prices in active markets, market quotations are
provided. For fixed income securities that do not trade on a daily basis, the independent pricing service prepares estimates of fair value
using a wide array of observable inputs including relevant market information, benchmark curves, benchmarking of like securities, sector
groupings, and matrix pricing. The observable market inputs that the Company’s independent pricing service utilizes may include
benchmark yields, reported trades, broker-de