Company: NODK
Filing Date: 2025-03-07
Form Type: 10-K
Source: 0001174947-25-000304
Chunk: 58

Company: NI Holdings, Inc.
Filing Date: 2025-03-07
Form: 10-K
Item: Item 1
Chunk 58
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 premiums written. Insurance
premiums on property and casualty policies are recognized in proportion to the underlying risk insured and are earned ratably over the
duration of the policies or, in the case of crop insurance, over the period of risk to the Company. At the end of each accounting period,
the portion of the premiums that is not yet earned is included in unearned premiums and is realized as revenue in subsequent periods over
the remaining term of the policy or period of risk. Our property and casualty policies, other than some of our auto lines and the non-standard
auto policies, typically have a term of twelve months.

Due to the nature of the crop planting and harvesting cycle and
the deadlines for filing and processing claims under the federal crop insurance program, insurance premiums for multi-peril crop insurance
are recognized and earned during the period of risk, which usually begins in spring and ends with harvest in the fall. Under the federal
crop insurance program, farmers must purchase crop insurance with respect to spring planted crops by March 15. By July 15, the farmer
must report the number of acres planted in each crop. On September 1, the insurer bills the farmer for the insurance premium, which is
due and payable by the farmer by October 1. If the farmer does not pay the premium by such date, the insurer will charge interest at a
rate of 15% because the insurer is required to pay the farmer’s portion of the premium to the FCIC by November 15, regardless of
whether the farmer pays the premium to the insurer. Except for claims occurring in the spring (primarily for prevented planting and required
replanting claims), claims are required to be filed with the FCIC by December 15. A different cycle exists for crops planted in the fall,
such as winter wheat, but the vast majority of crop insurance we write covers crops planted in the spring.

Net Investment Income and Net Investment
Gains (Losses)

We invest our excess cash in fixed income and equity securities.
Investment income includes interest and dividends earned on invested assets and is reported net of investment-related expenses. Net investment
gains (losses) are reported separately from net investment income. We recognize realized gains when investments are sold for an amount
greater than their cost or amortized cost (in the case of fixed income securities) and realized losses when investments are sold for an
amount less than their cost or amortized cost or when credit impairments are recorded, as applicable. We recognize changes in unreal