Company: NODK
Filing Date: 2025-03-07
Form Type: 10-K
Source: 0001174947-25-000304
Chunk: 1604

Company: NI Holdings, Inc.
Filing Date: 2025-03-07
Form: 10-K
Item: Item 5
Chunk 1604
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 acquisition costs over the period in which we earn the premiums.
The method we follow in computing deferred policy acquisition costs limits the amount of such deferred costs to their estimated realizable
value, which gives effect to the premium to be earned, related investment income, losses and loss adjustment expenses, and certain other
costs we expect to incur as we earn the premium.

Property and Equipment

We report property and equipment at cost less
accumulated depreciation. Depreciation is typically computed using the straight-line method based upon estimated useful lives of the assets.

Losses and Loss Adjustment Expenses

Liabilities for unpaid losses and loss adjustment expenses are estimates
at a given point in time of the amounts we expect to pay with respect to policyholder claims based on facts and circumstances then known.
At the time of establishing our estimates, we recognize that our ultimate liability for losses and loss adjustment expenses may differ
from these estimates. We base our estimates of liabilities for unpaid losses and loss adjustment expenses on assumptions as to future
loss trends, expected claims severity, judicial theories of liability, and other factors. During the loss adjustment period, we may learn
additional facts regarding certain claims, and, consequently, it often becomes necessary for us to refine and adjust our estimates of
the liability. We reflect any adjustments to our liabilities for unpaid losses and loss adjustment expenses in our operating results in
the period in which we determine the need for a change in the estimates.

We maintain liabilities for unpaid losses and loss adjustment expenses
with respect to both reported and unreported claims. We establish these liabilities for the purpose of covering the ultimate costs of
settling all losses incurred through the reporting date, including investigation and litigation costs. We base the amount of our liability
for reported losses primarily upon a case-by-case evaluation of the type of risk involved, knowledge of the circumstances surrounding
each claim, and the insurance policy provisions relating to the type of loss our policyholder incurred. We determine the amount of our
liability for unreported losses and loss adjustment expenses on the basis of historical information by line of insurance. Inflation is
not explicitly selected in the loss reserve analysis. However, historical inflation is embedded in the estimated loss development factors.
We closely monitor our liabilities and update them periodically using new information on reported claims and a variety of statistical
techniques. We do not discount our liabilities for unpaid losses and loss adjustment expenses.

Reserve estimates can change over time because of unexpected changes
in assumptions related to our external environment and, to a lesser extent, assumptions as to