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AGENCY TESTIMONY
Challenges in the for-hire vehicle insurance market
4:05:34
ยท
96 sec
Commissioner Do addresses the instability in the for-hire vehicle insurance market, primarily caused by the insolvency of American Transit Insurance Company. He outlines the TLC's efforts to mitigate the impact on the industry.
- The insolvency of American Transit Insurance Company has created instability in the for-hire vehicle insurance market.
- TLC sets insurance requirements, including no-fault minimums, to ensure adequate compensation for crash victims.
- The agency is working with the New York State Department of Financial Services to mitigate impacts on regulated fleets, drivers, and passengers.
- TLC is monitoring proposed language in the state budget aimed at returning the company to solvency and increasing competition in the commercial insurance marketplace.
David Do
4:05:34
This may be in part due to the Empire State Development's commuter van stabilization program.
4:05:40
Through this program, eligible applicants can receive up to 40,000 to help offset the cost of annual commuter van auto insurance policies as well as receive reimbursements for specific vehicle safety upgrades including advanced driver assistance, dash cams, and GPS tracking.
4:05:58
But this progress has not been without significant challenges.
4:06:02
One factor is this instability of the for hire vehicle insurance market created by American transit insurance companies forty six year saga of insolvency.
4:06:13
To be clear, TLC does not regulate insurance companies, but the agency does set insurance requirements including no fault minimums.
4:06:22
To ensure that drivers, passengers, pedestrians, cyclists, and other roadway users are adequately and quickly compensated for crashes involving TLC licensed vehicles.
4:06:33
Importantly, this coverage defers from liability insurance because it is available immediately to crash victims without the need of time consuming and expensive litigation.
4:06:44
We are working closely with our partners in New York State's Department of Financial Services to ensure that any impacts related to American transit insurance companies insolvency on our regulated fleets, drivers, and ultimately passengers are mitigated.
4:07:00
We are reviewing and monitoring proposed language in the state budget that will aid in returning the company to solvency and increase competition in commercial insurance marketplace.