Company: NODK
Filing Date: 2025-03-07
Form Type: 10-K
Source: 0001174947-25-000304
Chunk: 772

Company: NI Holdings, Inc.
Filing Date: 2025-03-07
Form: 10-K
Item: Item 1C
Chunk 772
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 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 from more than one broker-dealer, we would review the range of estimates
and select the most appropriate value based on the facts and circumstances. Should neither the independent pricing service nor a broker-dealer
provide a fair value estimate, we would develop a fair value estimate based on cash flow analyses and other valuation techniques that
utilize certain unobservable inputs. Accordingly, the Company classifies such a security as a Level 3 investment.

The fair value estimates of our investments provided by the
independent pricing service at each period-end were utilized, among other resources, in reaching a conclusion as to the fair value of
its investments.

Management reviews the reasonableness of the pricing provided
by the independent pricing service by employing various analytical procedures. We also use information from our third-party investment
advisor who utilizes different independent pricing services to further validate the