Company: NODK
Filing Date: 2025-03-07
Form Type: 10-K
Source: 0001174947-25-000304
Chunk: 1386

Company: NI Holdings, Inc.
Filing Date: 2025-03-07
Form: 10-K
Item: Item 4
Chunk 1386
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, 2022. The adoption of this guidance resulted in an allowance for expected credit losses of $425 for premiums and agents'
balances receivable in the Consolidated Balance Sheet as of December 31, 2022. Based on the results of the receivable analyses and management’s
review of our available-for-sale fixed income securities, it was determined that no allowance was required for reinsurance recoverables
or available-for-sale fixed income 

55 

securities in the Consolidated Balance Sheet as of December 31, 2022. See Item II, Part 8, Note 4 “Investments”
section of this Annual Report for applicable disclosures required by this guidance.

Leases

Effective for the year ended December 31, 2022, the Company
adopted the updated guidance for leases and elected to utilize a cumulative-effect adjustment to the opening balance of retained earnings
for the year of adoption, if necessary. Accordingly, the Company’s reporting for the comparative periods prior to adoption continue
to be presented in the consolidated financial statements in accordance with previous lease accounting guidance. The Company also elected
to apply all practical expedients applicable to the Company in the updated guidance for transition for leases in effect at adoption, including
using hindsight to determine the lease term of existing leases, the option to not reassess whether an existing contract is a lease or
contains a lease, and whether the lease is an operating or finance lease. The adoption of the updated guidance resulted in the Company
recognizing a right-of-use asset of $1,637 as part of other assets, a lease liability of $1,837 as part of accrued expenses and other
liabilities, and an elimination of the $200 deferred rent liability in the Consolidated Balance Sheet as of December 31, 2022. The cumulative
effect adjustment to the opening balance of retained earnings was zero. The adoption of the updated guidance did not affect the Company’s
results of operations or cash flows. See Item II, Part 8, Note 15 “Leases” section of this Annual Report for applicable disclosures
required by this guidance.

Income Taxes – Simplifying the Accounting for Income
Taxes

In December 2022, the Company adopted amended guidance
from the FASB relating to accounting for income taxes. The modifications primarily remove or amend several exceptions contained in existing
guidance to simplify income tax matters. The adoption of this guidance did not materially impact the Company’s financial position,
results of operations, or cash flows.

Not Yet Adopt