Company: NODK
Filing Date: 2025-03-07
Form Type: 10-K
Source: 0001174947-25-000304
Chunk: 14

Company: NI Holdings, Inc.
Filing Date: 2025-03-07
Form: 10-K
Item: Item 1
Chunk 14
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, our policy terms vary from state to state based on state regulations, competition, pricing,
and other factors including the prescribed minimum liability limits in each state. We believe our Company differentiates itself from many
larger companies competing for this business by focusing on ease of doing business and providing excellent claims service with local,
knowledgeable employees.

To compete successfully in the property and casualty
insurance market, we utilize data-driven insights and a disciplined underwriting approach to assess and price risks, practice prudent
claims management, reserve appropriately for unpaid claims, and provide quality service and competitive commissions to our independent
and captive agents.

10 

Regulation

General

We are subject to extensive regulation, particularly
at the state level. This regulation varies by state, but generally has its source in statutes and regulations that establish standards
and requirements for conducting the business of insurance and that delegate regulatory authority to state insurance regulatory agencies.
In general, such regulation is intended for the protection of those who purchase or use insurance products, not the companies that write
the policies. These laws and regulations have a significant impact on our business and relate to a wide variety of matters including accounting
methods, agent and company licensure, claims procedures, corporate governance, examinations, investing practices, policy forms, pricing,
trade practices, reserve adequacy, and underwriting standards.

State insurance laws and regulations require our
insurance company subsidiaries to file financial statements with state insurance departments everywhere they do business, and they are
subject to examination by the departments they are domiciled in at any time. Our insurance company subsidiaries prepare statutory-basis
financial statements in accordance with accounting practices and procedures prescribed or permitted by the state in which they are domiciled.
Our domiciliary states generally conform to National Association of Insurance Commissioners (“NAIC”) accounting practices
and procedures, so our examination reports and other filings generally are accepted by other states. As of December 31, 2024, all of our
insurance subsidiaries are domiciled in North Dakota.

The NAIC provides guidance to the states with
respect to standardized laws and regulations (including the accounting practices and procedures discussed above), which represent an effort
to standardize insurance industry practices across state lines, oftentimes referred to as “Model Regulations.” It should be
noted that these “model” laws are regulations that have no authority until the individual states pass them as part of the
state legislative process, which may, or may not, be done as suggested, or with modifications.

Premium rate regulation varies greatly among jurisdictions
and lines of