Company: NODK
Filing Date: 2025-03-07
Form Type: 10-K
Source: 0001174947-25-000304
Chunk: 20

Company: NI Holdings, Inc.
Filing Date: 2025-03-07
Form: 10-K
Item: Item 1
Chunk 20
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 must take steps to block or reject the transaction, notify the affected person,
and file a report with OFAC.

Jumpstart Our Business Startups Act
of 2012

Until December 31, 2022, we were an emerging growth
company (“EGC”), as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). We previously
took advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not EGCs,
such as reduced public company reporting, accounting, and corporate governance requirements. However, beginning on December 31, 2022,
we are no longer an EGC and no longer have the ability to delay adoption of these new or revised accounting standards or to take advantage
of reduced corporate governance disclosures.

Dividends

As an insurance holding company with no independent
operations or source of revenue, our capacity to pay dividends to our shareholders is based on the ability of our insurance company subsidiaries
to pay dividends to us. The ability of our subsidiaries to pay dividends to us is regulated by the laws of their state of domicile. Under
these laws, insurance companies must provide advance 

13 

informational notice to the domicile state insurance regulatory authority prior to
payment of any dividend or distribution to its shareholders. Prior approval from the state insurance regulatory authority must be obtained
before payment of an “extraordinary dividend” as defined under the state’s insurance code. For additional information,
see 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.”

Holding Company Laws

Most states, including North Dakota, have enacted
legislation that regulates insurance holding company systems. Each insurance company in a holding company system is required to register
with the insurance supervisory agency of its state of domicile and furnish certain information, including information concerning the operations
of companies within the holding company group that may materially affect the operations, management, or financial condition of the insurers
within the group. Pursuant to these laws, the North Dakota Insurance Department requires prior disclosure of material transactions involving
an insurance company and its affiliates. Under these laws, the North Dakota Insurance Department will have the right to examine us at
any time.

All transactions within our consolidated group
affecting our insurance company subsidiaries must be fair and equitable. Notice