16.	Commitments and Contingencies

The Company is a party to various legal actions arising principally from claims made under insurance policies and contracts. Those actions are considered by the Company in estimating reserves for loss and loss adjustment expenses. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the Company’s consolidated financial position or results of operations.

The Company provides workers’ compensation insurance in several states that maintain second-injury funds. Incurred losses on qualifying claims that exceed certain amounts may be recovered from these state funds. There is no assurance that the applicable states will continue to provide funding under these programs.

The Company manages risk on certain long-duration claims by settling these claims through the purchase of annuities from unaffiliated carriers. In the event these carriers are unable to meet their obligations under these contracts, the Company could be liable to the claimants. The following table summarizes (in thousands) the fair value of the annuities at December 31, 2017, that the Company has purchased to satisfy its obligations.

Life Insurance Company	A.M. Best Rating	Statement Value of Annuities Exceeding 1% of Statutory Surplus
Pacific Life and Annuity Company	A+	$	17,068
American General Life Insurance Company	A		14,952
New York Life Insurance Company	A++		11,312
Travelers Life and Annuity	A		10,471
Metropolitan Life Insurance Company	A+		6,993
John Hancock Life Insurance Company	A+		6,284
Athene Annuity and Life Company	A		4,760
United of Omaha	A+		4,375
Other			19,721
		$	95,936

Substantially all of the annuities are issued or guaranteed by life insurance companies that have an A.M. Best Company rating of “A” (Excellent) or better.

The Company leases equipment and office space under noncancelable operating leases. At December 31, 2017, future minimum lease payments are as follows (in thousands):

2018	$	135
2019		47
2020		37
2021		37
2022		37
	$	293

Rental expense was $0.1 million in 2017 and $0.2 million in 2016 and 2015.