Company: NODK
Filing Date: 2025-03-07
Form Type: 10-K
Source: 0001174947-25-000304
Chunk: 114

Company: NI Holdings, Inc.
Filing Date: 2025-03-07
Form: 10-K
Item: Item 1
Chunk 114
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. Management uses its best judgment in estimating the fair
value of the Company’s financial instruments; however, there are inherent limitations in any estimation technique. Therefore, for
substantially all financial instruments, the fair value estimates herein are not necessarily indicative of the amounts which could have
been realized in a sale transaction on the dates indicated. The estimated fair value amounts have been measured as of their respective
period-end and have not been re-evaluated or updated for purposes of our consolidated financial statements subsequent to those respective
dates. As such, the estimated fair values of these financial instruments subsequent to the respective reporting dates may be different
than the amounts reported at each period-end. Additionally, changes in the underlying assumptions used, including discount rates and estimates
of future cash flows, could significantly affect the results of current or future valuations.

The Company uses quoted values and other data provided by an
independent pricing service in its process for determining fair values of its investments. The evaluations of such pricing services represent
an exit price and a good faith opinion as to what a buyer in the marketplace would pay for a security in a current sale. This pricing
service provides us with one quote per instrument. For fixed income securities that have quoted prices in active markets, market quotations
are provided. For fixed income securities that do not trade on a daily basis, the independent pricing service prepares estimates of fair
value using a wide array of observable inputs including relevant market information, benchmark curves, benchmarking of like securities,
sector groupings, and matrix pricing. The observable market inputs that the Company’s independent pricing service utilizes may include
benchmark yields, reported trades, broker-dealer quotes, issuer spreads, two-sided markets, benchmark securities, market bids/offers,
and other reference data on markets, industry, and the economy. Additionally, the independent pricing service uses an option-adjusted
spread model to develop prepayment and interest rate scenarios.

Should the independent pricing service be unable to provide
a fair value estimate, we would first attempt to obtain a fair value estimate from our third-party investment advisor who utilizes different
independent pricing services. If unsuccessful, we would attempt to obtain a non-binding fair value estimate from a number of broker-dealers
and would review this estimate in conjunction with a fair value estimate reported by an independent business news service or other sources.
In instances where only one broker-dealer provides a fair value for a fixed income security, we would use that estimate. In instances
where the Company would be able to obtain fair value estimates