Company: NODK
Filing Date: 2025-03-07
Form Type: 10-K
Source: 0001174947-25-000304
Chunk: 538

Company: NI Holdings, Inc.
Filing Date: 2025-03-07
Form: 10-K
Item: Item 1B
Chunk 538
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 as well as the continued appropriateness of the estimated
amounts, and we reflect any adjustment we consider necessary in our current results of operations.

Variable-Interest Entities

Any company deemed to be a VIE is required to
be consolidated by the primary beneficiary of the VIE.

We assess our investments in other entities at
inception to determine if any meet the qualifications of a VIE. We consider an investment in another company to be a VIE if: (a) the total
equity investment at risk is not sufficient to permit the entity to finance its activities without additional subordinated financial support,
(b) the characteristics of a controlling financial interest are missing (either the ability to make decisions through voting or other
rights, the obligation to absorb expected losses of the entity, or the right to receive the expected residual returns of the entity),
or (c) the voting rights of the equity holders are not proportional to their obligations to absorb the expected losses of the entity and/or
the rights to receive the expected residual returns of the entity, and substantially all of the entity’s activities either involve
or are conducted on behalf of an investor that has disproportionately few voting rights. Upon the occurrence of certain events, we would
reassess our initial determination of whether the investment is a VIE.

We evaluate whether we are the primary beneficiary
of each VIE and we consolidate the VIE if we have both (1) the power to direct the economically significant activities of the entity and
(2) the obligation to absorb losses of, or the right to receive benefits from, the entity. We consider the contractual agreements that
define the ownership structure, distribution of profits and losses, risks, responsibilities, indebtedness, voting rights, and board representation
of the respective parties in determining whether we qualify as the primary beneficiary. Our assessment of whether we are the primary beneficiary
of a VIE is performed at least annually.

Cash and Cash Equivalents

Cash and cash equivalents include cash, money
market accounts, and certain investments in highly liquid debt instruments. Cost approximates fair value for these short-term investments.

Investments

The Company’s fixed income securities and equity securities
are classified as available-for-sale and carried at estimated fair value as determined by management based upon quoted market prices or
a recognized independent pricing service at the reporting date for those or similar investments. Changes in unrealized investment gains
or losses on the fixed income securities, net of applicable income taxes, are reflected directly in shareholders’ equity as a component
of