Company: NODK
Filing Date: 2025-03-07
Form Type: 10-K
Source: 0001174947-25-000304
Chunk: 2023

Company: NI Holdings, Inc.
Filing Date: 2025-03-07
Form: 10-K
Item: Item 7
Chunk 2023
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 determines the credit loss component of fixed income securities by utilizing discounted cash flow modeling to determine
the present value of the security and comparing the present value with the amortized cost of the security. If the amortized cost is greater
than the present value of the expected cash flows, the difference is considered a credit loss and recognized as an impairment loss in
net realized investment gains (losses). Credit impairments are recognized as an allowance on the Consolidated Balance Sheet with a corresponding
adjustment to earnings.

For fixed income securities that the Company does not intend to
sell or for which it is more likely than not that the Company would not be required to sell before an anticipated recovery in value, the
Company separates the credit loss component of the impairment from the amount related to all other factors and reports the credit loss
component in net realized investment gains (losses). The impairment related to all other factors (non-credit factors) is reported in other
comprehensive income. The allowance is adjusted for any additional credit losses and subsequent recoveries. Upon recognizing a credit
loss, the cost basis is not adjusted.

For fixed income securities that the Company intends to sell or
for which it is more likely than not that the Company will be required to sell before an anticipated recovery in value, the full amount
of the impairment is included in net investment gains (losses). The new cost basis of the investment is the previous amortized cost basis
less the impairment recognized in net investment gains (losses). The new cost basis is not adjusted for any subsequent recoveries in fair
value.

The Company reports investment income accrued separately from fixed
income investments, available for sale, and has elected not to measure an allowance for credit losses for investment income accrued. Investment
income accrued is written off through net realized investment gains (losses) at the time the issuer of the bond defaults or is expected
to default on payments.

For more information on investment valuation measurements, see Part
II, Item 8, Note 5 “Fair Value Measurements.”

Revenue Recognition

We record premiums written at policy inception and recognize them
as revenue on a pro rata basis over the policy term or, in the case of crop insurance, over the period of risk. The portion of premiums
that could be earned in the future is deferred and reported as unearned premiums. When policies lapse, the Company reverses the unearned
portion of the written premium and removes the applicable unearned premium. Policy-related fee income is recognized when collected.

The period of