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 the fair value of the annuities at December 31, 2020, 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
		(in thousands)
Pacific Life & Annuity Company	A+	$	16,489
American General Life Insurance Company	A		14,462
Travelers Life and Annuity Insurance Company	A		9,758
New York Life Insurance Company	A++		9,120
Metropolitan Life Insurance Company	A+		6,701
John Hancock Life Insurance Company	A+		6,536
United of Omaha Insurance Company	A+		5,141
Athene Annuity and Life Company	A		4,363
Pacific Life Insurance Company	A+		4,010
Lincoln Life Assurance Company of Boston	A+		3,698
Other			18,997
		$	99,275

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 has operating and finance leases for office space and equipment. Our leases have remaining lease terms of one month to 60 months, some of which include options to extend the leases for up to five years.

	Year Ended December 31,
	2020		2019
	(in thousands)
Operating lease cost	$	160	$	164
Finance lease cost:
Amortization of right-of-use assets		6		62
Interest on lease liabilities		2		4
Total finance lease cost	$	8	$	66

	Year Ended December 31,
	2020			2019
	(in thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	(116	)	$	430
Operating cash flows from finance leases		4			46
Financing cash flows from finance leases		50			47

Right-of-use assets obtained in the exchange for the lease obligations were as follows:

	December 31,
	2020		2019
	(in thousands)
Operating leases	$	56	$	369
Finance leases		180		—

	December 31, 2020			December 31, 2019			Balance Sheet Classification
	(in thousands)
Operating leases:
Operating lease right-of-use assets	$	314		$	430		Other assets

Operating lease liabilities	$	314		$	430		Accounts payable and other liabilities

Finance leases:
Finance lease right-of-use assets	$	365		$	185
Finance lease accumulated amortization right-of-use assets		(185	)		(179	)
Property and equipment, net	$	180		$	6		Property and equipment, net

Finance lease liabilities	$	185		$	54		Accounts payable and other liabilities

	December 31,
	2020				2019
Weighted average remaining lease term:
Operating leases		2.7		years		3.6		years
Finance leases		4.9		years		1.1		years
Weighted average discount rate:
Operating leases		5.24	%			5.25	%
Finance leases		3.30	%			5.21	%

The following is a maturity analysis of the annual undiscounted cash flows of the operating and finance lease liabilities as of December 31, 2020:

	Operating Leases		Finance Leases
	(in thousands)
2021	$	136	$	44
2022		120		39
2023		75		39
2024		6		39
2025		—		39
Total lease payments		337		200
Less imputed interest		23		15
Total	$	314	$	185