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 March 31, 2020, 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 limited partnership investments. The amount of unfunded commitments was $2,161,000 and $2,201,000 at March 31, 2020 and December 31, 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 Unaudited Condensed Consolidated Balance Sheets was as follows:



	Financial Statement Line	March 31, 2020		December 31, 2019
Assets
Operating lease assets	Other assets	$	2,359	$	335
Financing lease assets	Property and equipment, net	1,316		1,263
Total lease assets		$	3,675	1,598

Liabilities
Operating lease liabilities	Operating lease liability	$	2,421	$	324
Financing lease liabilities	Other liabilities	37		34
Total lease liabilities		$	2,458	$	358

The components of lease expenses were as follows:



	Three Months Ended
	March 31, 2020		March 31, 2019
Operating lease expense	$	127	$	43
Financing lease expense:
Amortization of leased assets	151		56
Short-term lease expense	—		77
Net lease expense	$	278	$	176

At March 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
Remaining in 2020	$	472		$	14		$	486
2021	601			18			619
2022	527			8			535
2023	516			—			516
2024	528			—			528
Thereafter	1,373			—			1,373
Total undiscounted future minimum lease payments	4,017			40			4,057
Less: Imputed interest	(1,596		)	(3		)	(1,599		)
Present value of lease liabilities	$	2,421		$	37		$	2,458

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



	March 31, 2020		December 31, 2019
Weighted average remaining lease term (months)
Operating leases	75		176
Financing leases	27		28

Weighted average discount rate
Operating leases	3.56	%	4.00	%
Financing leases	3.27	%	3.27	%

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



	Three Months Ended
	March 31, 2020		March 31, 2019
Cash paid for amounts included in the measurement of lease liabilities
Investing cash flows from financing leases	$	197	361

Right-of-use assets obtained in exchange for new operating lease liabilities	2,136		—
Right-of-use assets obtained in exchange for new financing lease liabilities	203		371

See Note 9 of these Notes to Unaudited Condensed Consolidated Financial Statements for information regarding commitments related to long-term debt, and Note 11 of these Notes to Unaudited Condensed Consolidated Financial Statements for information regarding commitments related to regulatory actions.