Company: NODK
Filing Date: 2025-03-07
Form Type: 10-K
Source: 0001174947-25-000304
Chunk: 753

Company: NI Holdings, Inc.
Filing Date: 2025-03-07
Form: 10-K
Item: Item 1C
Chunk 753
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 fixed income securities that the Company does not intend to
sell or for which it is more likely than not that the Company would not be required to sell before an anticipated recovery in value, the
Company separates the credit loss component of the impairment from the amount related to all other factors and reports the credit loss
component in net realized investment gains (losses). The impairment related to all other factors (non-credit factors) is reported in other
comprehensive income. The allowance is adjusted for any additional credit losses and subsequent recoveries. Upon recognizing a credit
loss, the cost basis is not adjusted.

For fixed income securities that the Company intends to sell or
for which it is more likely than not that the Company will be required to sell before an anticipated recovery in value, the full amount
of the impairment is included in net investment gains (losses). The new cost basis of the investment is the previous amortized cost basis
less the impairment recognized in net investment gains (losses). The new cost basis is not adjusted for any subsequent recoveries in fair
value.

The Company reports investment income accrued separately from fixed
income investments, available for sale, and has elected not to measure an allowance for credit losses for investment income accrued. Investment
income accrued is written off through net realized investment gains (losses) at the time the issuer of the bond defaults or is expected
to default on payments.

For more information on investment valuation measurements, see Part
II, Item 8, Note 5 “Fair Value Measurements.”

Revenue Recognition

We record premiums written at policy inception and recognize them
as revenue on a pro rata basis over the policy term or, in the case of crop insurance, over the period of risk. The portion of premiums
that could be earned in the future is deferred and reported as unearned premiums. When policies lapse, the Company reverses the unearned
portion of the written premium and removes the applicable unearned premium. Policy-related fee income is recognized when collected.

The period of risk for our crop insurance program, which is comprised
of primarily spring-planted crops, typically runs from April 1 (the approximate time when farmers can begin to work their fields) through
December 15 (last date claims can be made for the most recent planting season).

Premiums and Agents’ Balances
Receivable

Premiums and agents’ balances receivable include both direct
and agent billed premiums as well as crop notes receivable related to the multi-peril crop and crop hail insurance.