Company: NODK
Filing Date: 2025-03-07
Form Type: 10-K
Source: 0001174947-25-000304
Chunk: 26

Company: NI Holdings, Inc.
Filing Date: 2025-03-07
Form: 10-K
Item: Item 1
Chunk 26
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 as distracted driving or a more aggressive tort environment.

16 

Under the federal crop insurance program, each
insurer is required to accept every application for multi-peril crop insurance that they receive, and the premiums and the policy terms
are set by the RMA, which is the federal government agency administering the federal crop insurance program. Accordingly, no policy underwriting
is necessary in connection with our multi-peril crop insurance line of business. Unlike the multi-peril crop business, we have the ability
to underwrite and price crop hail insurance. We rely on AFBIS to underwrite our crop hail insurance line of business. If we believe the
policy will expose us to too much risk in a particular geographic area or if we are unwilling to insure the crop, we have the ability
to decline to issue the policy.

Volatility in crop prices and yields, as
a result of weather conditions, trade policies, or other events, could adversely impact our financial condition and operating results.

Unpredictable weather conditions and other events
such as excessive rain, flooding, droughts, hail, pests, and plant diseases can significantly impact crop prices and yields, creating
volatility in our crop insurance business. Additionally, international trade policies, including the imposition of tariffs between major
trading partners such as the United States and China, can create significant fluctuations in crop prices. We are unable to predict the
ultimate result and duration of any tariff actions by the U.S. government, or countermeasures that may be taken by other nations. These
trade tensions and retaliatory tariffs may affect agricultural commodity prices and create additional market uncertainty in our crop insurance
business. In addition, the amount of multi-peril crop insurance business we retain is subject to the terms of the SRA and is dependent
on the actual direct loss ratio experience. A significant decrease in crop prices and variability in the loss experience, whether caused
by weather events, trade policies, or other events, could have a material negative effect on our business and results of operations.

Our ability to manage our exposure to underwriting
risks depends on the availability and cost of reinsurance coverage.

We use reinsurance arrangements to manage the
amount of risk we retain, stabilize underwriting results, and increase underwriting capacity. The availability and cost of reinsurance
are subject to current market conditions and may vary significantly over time. Any decrease in the amount of reinsurance maintained will
increase our risk of loss. We may be unable to maintain our desired reinsurance coverage