Commitments and Contingencies

12 Months Ended

Dec. 31, 2020

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

Litigation

We are involved in claims-related legal actions arising in the ordinary course of business. We accrue amounts resulting from claims-related legal actions in unpaid losses and LAE during the period that we determine an unfavorable outcome becomes probable and we can estimate the amounts. Management makes revisions to our estimates based on its analysis of subsequent information that we receive regarding various factors, including: (i) per claim information; (ii) company and industry historical loss experience; (iii) judicial decisions and legal developments in the awarding of damages; and (iv) trends in general economic conditions, including the effects of inflation.

At December 31, 2020, we were not involved in any material non-claims-related legal actions.

Commitments to fund partnership investments

We have fully funded three limited partnership investments and have committed to fund our remaining four limited partnership investments. The amount of unfunded commitments was $2,056,000 and $2,201,000 at December 31, 2020 and 2019, respectively.

Leases

We, as lessee, have entered into leases of commercial office space of various term lengths. In addition to office space, we lease office equipment and a parking lot under operating leases and vehicles under finance leases.

The classification of operating and finance lease asset and liability balances within the Consolidated Balance Sheets was as follows:


	Financial Statement Line	December 31, 2020		December 31, 2019
Assets
Operating lease assets	Other assets	$	2,168	$	335
Financing lease assets	Property and equipment, net	1,214		1,263
Total lease assets		$	3,382	$	1,598

Liabilities
Operating lease liabilities	Operating lease liability	$	2,311	$	324
Financing lease liabilities	Other liabilities	36		34
Total lease liabilities		$	2,347	$	358

The components of lease expenses were as follows:


	Years ended
	December 31, 2020		December 31, 2019
Operating lease expense	$	630	$	183
Financing lease expense:
Amortization of leased assets	702		396
Interest on lease liabilities	1		1
Short-term lease expense	—		139
Net lease expense	$	1,333	$	719

At December 31, 2020, future minimum gross lease payments relating to these non-cancellable operating and finance lease agreements were as follows:


	Operating Leases		Finance Leases		Total
2021	$	610	$	24	$	634
2022	603		14		617
2023	586		4		590
2024	588		—		588
2025	254		—		254
Thereafter	1,190		—		1,190
Total undiscounted future minimum lease payments	3,831		42		3,873
Less: Imputed interest	(1,520)		(6)		(1,526)
Present value of lease liabilities	$	2,311	$	36	$	2,347

Weighted average remaining lease term and discount rate related to operating and finance leases were as follows:


	December 31, 2020		December 31, 2019
Weighted average remaining lease term (months)
Operating leases	67		176
Financing leases	23		28

Weighted average discount rate
Operating leases	3.57	%	4.00	%
Financing leases	3.27	%	3.27	%

Other cash and non-cash related activities were as follows:


	Years ended
	December 31, 2020		December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities
Investing cash flows from financing leases	$	631	$	1,081

Right-of-use assets obtained in exchange for new operating lease liabilities	2,471		7
Right-of-use assets obtained in exchange for new financing lease liabilities	652		1,111

Capital lease amortization expenses are included in depreciation expense in our Consolidated Statements of Comprehensive Income (Loss). See Note 6 for information regarding depreciation expense. See Note 10 for information regarding commitments related to long-term debt, and Note 13 for commitments related to regulatory actions.