Company: NODK
Filing Date: 2025-03-07
Form Type: 10-K
Source: 0001174947-25-000304
Chunk: 18

Company: NI Holdings, Inc.
Filing Date: 2025-03-07
Form: 10-K
Item: Item 1
Chunk 18
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 of an insurer. This assessment
will include the material and relevant risks identified by the insurer associated with an insurer’s current business plan and the
sufficiency of capital resources to support those risks. Although our insurance company subsidiaries are exempt from ORSA because of their
size, we intend to incorporate those elements of ORSA that we believe constitute “best practices” into our internal enterprise
risk assessment.

Market Conduct Regulation

State insurance laws and regulations include numerous
provisions governing trade practices and the marketplace activities of insurers, including provisions governing the form and content of
disclosure to consumers, illustrations, advertising, sales practices, and complaint handling. State regulatory authorities generally enforce
these provisions through periodic market conduct examinations.

Guaranty Fund Laws

All states have guaranty fund laws under which
insurers doing business in the state can be assessed to fund policyholder liabilities of insolvent insurance companies. Under these laws,
an insurer is subject to assessment depending upon its market share in the state of a given line of business. For the years ended December
31, 2024, 2023, and 2022, we paid only minimal assessments pursuant to state insurance guaranty association laws. We establish reserves
relating to insurance companies that are subject to insolvency proceedings 

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when it becomes probable that we will be subject to an assessment
and the amount of such assessment can be estimated. We cannot predict the amount and timing of any future assessments under these laws.

Federal Regulation

The U.S. federal government generally does not
directly regulate the insurance industry except for certain areas of the market, such as insurance for crops, flood, nuclear, and terrorism
risks. However, the federal government has undertaken initiatives or considered legislation in several areas that may affect the insurance
industry, including tort reform, corporate governance, and the taxation of reinsurance companies. The Dodd-Frank Act established the Federal
Insurance Office, which is authorized to study, monitor, and report to Congress on the insurance industry and to recommend that the Financial
Stability Oversight Council designate an insurer as an entity posing risks to the U.S. financial stability in the event of the insurer’s
material financial distress or failure. In December 2013, the Federal Insurance Office issued a report on alternatives to modernize and
improve the system of insurance regulation in the U.S., including by increasing national uniformity through either a federal charter or
effective action by the states. Changes to federal legislation and administrative policies in several areas,