Company: NODK
Filing Date: 2025-03-07
Form Type: 10-K
Source: 0001174947-25-000304
Chunk: 257

Company: NI Holdings, Inc.
Filing Date: 2025-03-07
Form: 10-K
Item: Item 1A
Chunk 257
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 reinsurance coverage or to obtain other reinsurance coverage in adequate
amounts and/or at favorable rates. If we are unable to maintain appropriate reinsurance coverage, it may be difficult for us to manage
our underwriting risks and operate our business profitably. For additional information, see Part II, Item 8, Note 6 “Reinsurance.”

If we cannot collect loss recoveries from
our reinsurers in accordance with our reinsurance agreements, we may incur additional losses.

Although reinsurance creates a contractual liability
for reinsurers to the extent the risk is transferred, it does not eliminate our liability to policyholders because we remain liable as
the primary insurer on all reinsured risks. Our reinsurance program strategically spreads exposure among a group of highly-rated, geographically
diverse, and well-capitalized reinsurers. All of our significant reinsurance partners are rated “A-” (Excellent) or better
by AM Best. However, we remain subject to credit risk relating to our ability to collect these recoverables. Our reinsurance recoveries
are also subject to the underlying losses meeting the qualifying conditions and specified limits within the respective contracts. Additionally,
we are subject to the risk that reinsurers may dispute their obligations to pay our claims. Our inability to collect a material recovery
from a reinsurer on a timely basis, or at all, could have a material adverse effect on our liquidity, operating results, and financial
condition. For additional information, see Part II, Item 8, Note 6 “Reinsurance.”

Business and Operational Risks

The impact of a future pandemic, and related economic conditions, could
materially affect our results of operations, financial position, and/or liquidity.

We face risks associated with pandemics, including the impact
of reduced economic activity and unemployment, government actions, and capital markets disruption. These risks are unpredictable and difficult
to quantify, and could vary significantly depending on the extent and duration of the pandemic and related economic conditions, along
with potentially impacting each of our business segments and geographic markets differently.

Any future federal, state, and local government actions to address
the impact of a pandemic may adversely affect us. Regulatory restrictions or requirements could impact pricing, risk selection, and our
rights and obligations with respect to our policies and insureds, including our ability to cancel policies or our right to collect premiums.
It is also possible that changes in economic conditions and steps taken by federal, state, and local governments could require an increase
in taxes at the federal, state,