Company: NODK
Filing Date: 2025-03-07
Form Type: 10-K
Source: 0001174947-25-000304
Chunk: 19

Company: NI Holdings, Inc.
Filing Date: 2025-03-07
Form: 10-K
Item: Item 1
Chunk 19
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 including changes in federal
taxation, can also significantly affect the insurance industry and us.

We are also subject to the Fair and Accurate Credit
Transactions Act of 2003 and the Health Insurance Portability and Accountability Act of 1996, both of which require us to protect the
privacy of our customers’ information, including health and credit information.

Privacy

We are subject to numerous U.S. federal and state
laws governing the collection, disclosure, and protection of personal and confidential information of our clients or employees. These
laws and regulations are increasing in complexity and number, change frequently, and may conflict. Congress, state legislatures, and regulatory
authorities are expected to consider additional regulation relating to privacy and other aspects of customer information.

As mandated by the Gramm-Leach-Bliley Act (“GLBA”),
states have promulgated laws and regulations that require financial institutions, including insurance companies, to take steps to protect
the privacy of certain consumer and customer information. The NAIC has adopted several provisions to facilitate the implementation of
the GLBA, including the Privacy of Consumer Financial and Health Information Model Regulation and the Standards for Safeguarding Customer
Information Model Regulation. Several states adopted similar provisions regarding the safeguarding of customer information. We have implemented
procedures to comply with the GLBA’s related privacy requirements.

In October 2017, the NAIC adopted the Insurance
Data Security Model Law (“IDSML”), which requires insurers, insurance agents, and other entities required to be licensed under
state insurance laws to develop and maintain a written information security program, conduct risk assessments, oversee the data security
practices of third-party service providers, and other related requirements. Several states in which we operate, including North Dakota,
have adopted the IDSML. Such enactments and regulations could raise compliance costs and subject us to the risk of regulatory enforcement
actions, penalties, and reputational harm. Any such events could potentially have an adverse impact on our business, financial condition,
or results of operations.

Office of Foreign Asset Control

The Treasury Department’s Office of Foreign
Asset Control (“OFAC”) maintains a list of “Specifically Designated Nationals and Blocked Persons” (the “SDN
List”). The SDN List identifies persons and entities that the government believes are associated with terrorists, rogue nations,
or drug traffickers. OFAC’s regulations prohibit insurers, among others, from doing business with persons or entities on the SDN
List. If the insurer finds and confirms a match, the insurer