Q&A
Insurance fraud concerns and ATIC insolvency
1:20:47
ยท
96 sec
Council Member Brooks-Powers raises concerns about insurance fraud and the insolvency of American Transit Insurance Company (ATIC), which provides PIP insurance to 60% of for-hire vehicles in the city. Commissioner Do responds to these concerns.
- ATIC reported insolvency in recent financial filings and suggested the $200,000 premium has incentivized fraudulent claims.
- The TLC works with the state Department of Financial Services and the governor's office on insurance-related issues.
- ATIC's insolvency developed over a 30-year period, reaching $1 billion.
- The current superintendent is addressing the issue head-on, with three strong solutions proposed in the budget bill to create a healthier market.
Selvena N. Brooks-Powers
1:20:47
American Transit Insurance Company currently provides PIP insurance to 60% of for hire vehicles in the city and has recently reported in financial filings that it is insolvent.
1:20:58
They have suggested that the $200,000 premium has incentivized fraudulent insurance claims.
1:21:06
Has the TLC noticed many documented cases of PIP insurance fraud?
David Do
1:21:11
Yeah.
1:21:12
The TLC is not an insurance regulator.
1:21:14
We work with, the state Department of Financial Services.
1:21:19
We work with the governor's office, on a regular basis to ensure, that we look at all of these things.
1:21:26
I appreciate the DFS for, bringing together, over 40 different stakeholders last year, to look at the issues at hand.
1:21:38
ATIC's insolvency did not happen overnight.
1:21:41
It happened over a thirty year period.
1:21:43
Right?
1:21:44
To reach a billion dollars of, insolvency, means that, you know, that they were playing, the market, for a very long time.
1:21:55
They were uncutting, excuse me, undercutting their competitors.
1:21:58
And so this is the first, superintendent that is now saying, hey, enough is enough.
1:22:04
I'm not gonna pass the buck down the road that I could have swept this under the rug.
1:22:09
But she's not doing that.
1:22:11
She's taking this head on.
1:22:12
And in the budget bill, there are three, strong solutions that help us towards, the first steps, of getting, a healthier market.