Company: NODK
Filing Date: 2025-03-07
Form Type: 10-K
Source: 0001174947-25-000304
Chunk: 1122

Company: NI Holdings, Inc.
Filing Date: 2025-03-07
Form: 10-K
Item: Item 3
Chunk 1122
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 the receipt of dividends. Because Nodak
Mutual Group has no current plans to utilize any cash dividends that it may receive from us, we anticipate that it will waive its right
to receive substantially all of the dividends that are paid to it by us or immediately return substantially all of such funds to us as
an equity contribution. However, because the Board of Directors of Nodak Mutual Group includes persons who are not members of our Board
of Directors, we cannot provide any assurance that they will take such action with respect to any cash dividend that we may declare. If
we are unable to obtain a commitment from the Board of Directors of Nodak Mutual Group that it will waive its right to receive any cash
dividend that we intend to declare or that it will return the funds from such dividend to the Company as an equity contribution, our Board
of Directors may decide not to declare a cash dividend.

We are not currently subject to regulatory restrictions
on the payment of dividends to our shareholders. However, any future dividends may be restricted to those received from our insurance
subsidiaries. North Dakota law limits the amount of dividends and other distributions that Nodak Insurance and Direct Auto may pay to
us. For information regarding the regulatory restrictions on dividends our insurance subsidiaries can pay, refer to Part II, Item 7, “Management’s
Discussion and Analysis of Financial Condition and Results of Operations,” “Liquidity and Capital Resources,” and Part
II, Item 8, Note 22 “Statutory Net Income (Loss), Capital and Surplus, and Dividend Restrictions.”

Even if we receive dividends from Nodak Insurance
or Direct Auto, we may not declare any dividends to our shareholders due to working capital requirements. We are not subject to regulatory
restrictions on the payment of dividends to shareholders, but we are subject to the requirements of the North Dakota Business Corporation
Act. This law generally permits dividends or distributions to be paid, to the extent we still have the ability to pay our debts in the
ordinary course of business after making the dividend or distribution payments. This law requires our total assets to exceed our total
liabilities plus the amount that would be needed to satisfy the preferential rights upon dissolution of holders of stock with senior liquidation
rights if we were to be dissolved at the time the dividend or distribution is paid.

Unregistered Securities

The Company has not sold any unregistered securities
within the past three years.

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Issuer Stock Purchases

The Company had no common