Company: NODK
Filing Date: 2025-03-07
Form Type: 10-K
Source: 0001174947-25-000304
Chunk: 909

Company: NI Holdings, Inc.
Filing Date: 2025-03-07
Form: 10-K
Item: Item 2
Chunk 909
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 any payment, or
when any payments may begin. Therefore, the timing and the amount of cash dividends that may be paid to shareholders in the future is
uncertain. In addition, the Board of Directors may declare and pay periodic special cash dividends in addition to, or in lieu of, regular
cash dividends. In determining whether to declare or pay any dividends, whether regular or special, the Board of Directors will take into
account our financial condition and results of operations, income tax considerations, capital requirements, industry standards, and economic
conditions. We cannot guarantee that we will pay dividends or that, if paid, we will not reduce or eliminate dividends in the future.

If we pay dividends to our shareholders, we also
will be required to pay dividends to Nodak Mutual Group, unless Nodak Mutual Group elects to waive 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