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Commitments and Contingencies | 3 Months Ended
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Mar. 31, 2021
Commitments and Contingencies Disclosure [Abstract] |
Commitments and Contingencies | Commitments and Contingencies Operating Leases All leases are office space leases and are classified as operating leases that expire through 2031. Some of our office leases include the option to extend for up to 5 years or less at management’s discretion. Such extension options were not included in the measurement of the lease liability. Below is a summary of our right of use asset and lease liability as of March 31, 2021:
| As of
| March 31, 2021
Right of use asset - Operating leases | $ | 26,896 |
Operating lease liability | $ | 32,700 |
Weighted-average remaining lease term (years) | 6.9
Weighted-average discount rate (1) | 7.4 | %
(1) Discount rate was determined by applying available market rates to lease obligations based upon their term. As of March 31, 2021, the approximate aggregate minimum future lease payments required for our lease liability over the remaining lease periods are as follows:
| March 31, 2021
Remainder of 2021 | $ | 6,641 |
2022 | 7,806 |
2023 | 7,041 |
2024 | 6,168 |
2025 | 5,437 |
2026 and thereafter | 16,043 |
Total minimum payments | 49,136 |
Less: liabilities held for sale | (757) |
Less: present value adjustment | (15,679) |
Total | $ | 32,700 |
The following table presents rent expense for the Company’s office leases recorded on the condensed consolidated statements of operations for the following periods:
| Three Months Ended March 31, |  |
| 2021 |  | 2020 |  |  |  |  |  |
Rent expense for office leases (1) | $ | 2,195 |  |  | $ | 2,133 |  |  |  |  |  |  |
(1) Includes lease expense of $153 and $101 for the three months ended March 31, 2021 and 2020, respectively, for assets held for sale. Litigation The Company is a defendant in Mullins v. Southern Financial Life Insurance Co., which was filed in February 2006, in the Pike Circuit Court, in the Commonwealth of Kentucky. A class was certified in June 2010. At issue is the duration or term of coverage under certain disability and life credit insurance policies. The action alleges violations of the Consumer Protection Act and certain insurance statutes, as well as common law fraud and seeks compensatory and punitive damages, attorney fees and interest. To date, the court has not awarded sanctions in connection with Plaintiffs’ April 2012 Motion for Sanctions. In January 2015, the trial court issued an Order denying the Company’s motion to decertify the class, which was upheld on appeal. Following a February 2017 hearing, the court denied the Company’s Motion for Summary Judgment as to certain disability insurance policies. In January 2018, the court vacated its November 2017 order granting Company’s Motion for Summary Judgment as to the life certificates at issue with leave to refile. No trial or additional hearings are currently scheduled. The Company considers such litigation customary in the insurance industry. In management's opinion, based on information available at this time, the ultimate resolution of such litigation, which it is vigorously defending, should not be materially adverse to the financial position of the Company. It should be noted that large punitive damage awards, bearing little relation to actual damages sustained by plaintiffs, have been awarded in certain states against other companies in the credit insurance business. At this time, the Company cannot estimate a range of loss that is reasonably possible. The Company and its subsidiaries are parties to other legal proceedings in the ordinary course of business. Although the Company’s legal and financial liability with respect to such proceedings cannot be estimated with certainty, the Company does not believe that these proceedings, either individually or in the aggregate, are likely to have a material adverse effect on the Company’s financial position.

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