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, 2018, we were not involved in any material non-claims-related legal actions.

Commitments to fund partnership investments

We have fully funded two limited partnership investments and have committed to fund our remaining four investments. The amount of unfunded commitments was $2,454,000 and $1,365,000 at December 31, 2018 and 2017, respectively.

Leases

We, as lessee, have entered into various short-term to medium-term leases of commercial office space. In addition to office space, we lease office equipment and a parking lot under operating leases and vehicles under capital leases. Lease expense amounted to $589,000, $290,000, and $205,000 for the years ended December 31, 2018, 2017, and 2016, respectively. At December 31, 2018, future minimum gross lease payments relating to these non-cancellable operating and capital lease agreements are as follows:



	Amount
2019	$	380
2020	265
2021	214
2022	138
2023	24

Capital lease amortization expenses are included in depreciation expense in our Consolidated Statements of Comprehensive Income (Loss). See Note 7 for information regarding depreciation expense. See Note 11 for information regarding commitments related to long-term debt, and Note 14 for commitments related to regulatory actions.