Company: NODK
Filing Date: 2025-03-07
Form Type: 10-K
Source: 0001174947-25-000304
Chunk: 402

Company: NI Holdings, Inc.
Filing Date: 2025-03-07
Form: 10-K
Item: Item 1A
Chunk 402
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, within a company have been detected.

Management’s Report on Internal Control over Financial
Reporting

Our management is responsible for establishing
and maintaining adequate internal control over financial reporting. Under the supervision and with the participation of our Chief Executive
Officer and our Chief Financial Officer, our management has reviewed and evaluated the effectiveness of our internal control over financial
reporting based on the framework and criteria established in Internal Control – Integrated Framework (2013) issued by the Committee
of Sponsoring Organizations of the Treadway Commission (the “COSO Framework”). Because of its inherent limitations, internal
control over financial reporting may not prevent or detect misstatements.

Based on our evaluation under the COSO Framework,
the Chief Executive Officer and Chief Financial Officer have concluded that the Company’s current internal control over financial
reporting is effective at December 31, 2024, and that our consolidated financial statements we include in this 2024 Annual Report present
fairly, in all material respects, our financial position, results of operations, and cash flows in accordance with accounting principles
generally accepted in the United States of America.

Forvis Mazars, LLP, our independent registered
public accounting firm, has issued an audit report on the effectiveness of our internal control over financial reporting as of December
31, 2024. This audit report appears in Part II, Item 8 “Financial Statements and Supplementary Data” of this 2024 Annual Report.

Material Weakness in Internal Control Over Financial Reporting

A material weakness is a deficiency, or a combination of deficiencies,
in internal control over financial reporting (“ICFR”), such that there is a reasonable possibility that a material misstatement
of the Company's annual or interim financial statements will not be prevented or detected on a timely basis.

As previously disclosed in our Quarterly Report on Form 10-Q/A for
the quarter ended June 30, 2024, the Company did not design and maintain effective controls over its accounting for intercompany reinsurance
pooling activity. Specifically, it lacked an effectively designed internal control related to the evaluation of pooling payable/receivable
balances, including when a pool member is sold. This material weakness resulted in a material error and the restatement of the Company's
consolidated financial statements for the three- and six-month periods ended June 30, 2024. Additionally, this material weakness could
result in misstatements of the aforementioned accounts or disclosures that would result in a material misstatement to the annual or interim
consolidated financial