The historical statement of operations data and balance sheet data in the table below is derived from our audited financial statements, which are included elsewhere in this annual report. This data should be read in conjunction with "Management's Discussion and Analysis of Financial Condition and Results of Operations" and with the financial statements, related notes, and other financial information included elsewhere in this annual report. The historical results presented below are not necessarily indicative of the results to be expected for any future period.
The timing between when we submit a consumer's application for insurance to the insurance company and when we generate revenues has varied over time. The type of insurance product and the insurance company's backlog are the primary factors that impact the length of time between submitted applications and revenue recognition. Over the past three years, the time between application submission and revenue recognition has averaged approximately three months. Any changes in the amount of time between submitted application and revenue recognition, which will be influenced by many factors not under our control, will create fluctuations in our operating results and could affect our business, operating results and financial condition.
Life insurance commissions decreased $688,000, or 5%, even though policies sold increased by about 1% from 15,291 to 15,495. Revenues were negatively impacted by an increase in first year lapses. We record commission revenue on new policies sold when the policy is placed in force. However, if the customer is paying the premium over the entire first year of the policy, for example on a monthly basis, we will only receive commission as the customer pays. If the policy lapses prior to all of the premium being paid, we will not collect our full commission. We record a reserve for this situation when revenue is recognized; however, during 2008 lapse rates were higher than the reserve anticipated. In total, these higher lapses reduced commission revenue by about $460,000. Commission from health insurance decreased 10% in 2008, as we discontinued brokerage sales for health insurance during the first quarter of 2005, and are now outsourcing this business to third parties. As a result, there were no new health insurance policies sold during 2008 or 2007. All of the commissions result from previously-sold policies that continue in force. Fees from the sale of internet insurance leads decreased 38% to $2.7 million in 2008, compared to $4.3 million in 2007. This decrease results primarily from a decrease in the number of internet leads being sold, which resulted primarily from a decrease in advertising. We also discontinued selling excess life insurance leads during 2008, in favor of having those leads pursued by our in-house agents. We are expanding the number of agents in our in-house call center. As new agents mature and become more productive, we expect them to generate commission revenue streams that will exceed the revenue that could have been generated from selling leads.
Selling and Marketing. Selling and marketing expenses decreased $1.7 million, or 31%, in 2008 when compared with 2007, to a total of $3.9 million in 2008 compared to $5.7 million in 2007. We intentionally decreased our advertising spending in 2008 as we were generating more leads than were required for our growing call center. As a result, selling and marketing expenses decreased to 25% of revenue, compared to 32% of revenue in 2007.
Operations. Operations expenses increased by less than 1%, or $15,000, in 2008. The majority of this category consists of wages and bonuses for the agents in our call center, as well as for the support staff that processes and case manages the applications and delivered policies. These costs remained relatively flat from 2007 to 2008. Increases in other categories, such as postage and license costs for new agents, were offset by a decrease in telephone charges that resulted from a one-time refund for overcharges from our prior telecommunications carrier.
Depreciation and amortization. Depreciation and amortization increased less than 1%, or $2,000, in 2008 when compared to 2007. Amortization costs related to the life insurance renewals acquired in 2004 declines each year in anticipation of policy lapses that will result in steadily declining revenue from these renewal contracts. This decrease was offset by higher depreciation charges on new computer equipment.
Interest income was $365,000 in 2008 compared to $442,000 in 2007. There was no interest expense in 2008 or 2007. Interest income decreased due to lower interest rates in 2008, as well as a decrease in invested assets, which was caused by the purchase of treasury shares. The current low interest rate environment will likely continue to negatively impact our interest income, as much of our income is derived from short term investments.
We currently expect that our cash and fixed maturity investments of approximately $9 million at December 31, 2008 will be sufficient to meet our anticipated cash requirements for at least the next 12 months. The timing and amounts of our working capital expenditures are difficult to predict, and if they vary materially, we may require additional financing. If we require additional equity financing, it may be dilutive to our stockholders and the equity securities issued in a subsequent offering may have rights or privileges senior to our common stock. If debt financing is available, it may require additional restrictive covenants with respect to dividends, raising capital and other financial and operational matters, which could impact or restrict our operations. If we cannot obtain adequate financing on acceptable terms, we may be required to reduce the scope of our marketing or operations, which could harm our business, results of operations and our financial condition.
Cash provided by investment activities was $600,000 in 2008 and $907,000 in 2007, and resulted from the proceeds of investment and certificate of deposit maturities, as well as the proceeds of the sale of land and building in 2007, exceeding amounts reinvested and spent on fixed asset purchases. During 2007, fixed asset purchases totaled $874,000, which was significantly higher than the $336,000 spent in 2008, and resulted primarily from investing in new computer hardware and software, both from life cycle replacements as well as the development of a new customer management system.
In the normal course of business, we enter into financing transactions, lease agreements, or other commitments. These commitments may obligate us to certain cash flows during future periods. The following table summarizes such obligations as of December 31, 2008: