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, 2021, 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+	$	14,518
American General Life Insurance Company	A		14,410
Travelers Life and Annuity Insurance Company	A		9,485
New York Life Insurance Company	A++		8,830
United of Omaha Life Insurance Company	A+		7,922
Berkshire Hathaway Life Insurance Company of Nebraska	A++		7,457
Metropolitan Life Insurance Company	A+		6,465
John Hancock Life Insurance Company	A+		6,264
Pacific Life Insurance Company	A+		5,319
Athene Annuity and Life Company	A		3,892
Lincoln Life Assurance Company of Boston	A+		3,318
Other			13,061
		$	100,941

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,
	2021		2020
	(in thousands)
Operating lease cost	$	149	$	160
Finance lease cost:
Amortization of right-of-use assets		76		6
Interest on lease liabilities		6		2
Total finance lease cost	$	82	$	8

	Year Ended December 31,
	2021			2020
	(in thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	(120	)	$	(116	)
Operating cash flows from finance leases		6			4
Financing cash flows from finance leases		44			50

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

	December 31,
	2021		2020
	(in thousands)
Operating leases	$	15	$	56
Finance leases		61		180

	December 31, 2021			December 31, 2020			Balance Sheet Classification
	(in thousands)
Operating leases:
Operating lease right-of-use assets	$	193		$	314		Other assets

Operating lease liabilities	$	193		$	314		Accounts payable and other liabilities

Finance leases:
Finance lease right-of-use assets	$	241		$	365
Finance lease accumulated amortization right-of-use assets		(76	)		(185	)
Property and equipment, net	$	165		$	180		Property and equipment, net

Finance lease liabilities	$	202		$	185		Accounts payable and other liabilities

	December 31,
	2021				2020
Weighted average remaining lease term:
Operating leases		1.8		years		2.7		years
Finance leases		4.1		years		4.9		years
Weighted average discount rate:
Operating leases		5.13	%			5.24	%
Finance leases		3.25	%			3.30	%

The following is a maturity analysis of the annual undiscounted cash flows of the operating and finance lease liabilities as of December 31, 2021:

	Operating Leases		Finance Leases
	(in thousands)
2022	$	122	$	55
2023		75		53
2024		6		53
2025		—		49
2026		—		6
Total lease payments		203		216
Less imputed interest		10		14
Total	$	193	$	202