An insolvent commercial auto liability insurer has filed a federal lawsuit against healthcare providers, alleging they conspired to submit fraudulent accident claims to the company.

The release of a revised Actuarial Statement of Opinion for American Transit Insurance Company (ATIC) revealed an alarmingly large deficit in ATICs loss reserves.

The Indictment charges: operating an extensive no-fault insurance fraud that submitted more than $11 million in fraudulent claims for psychological testing and services—and for laundering the proceeds of that fraud through a network of illicit check cashers. The defendants were arrested this morning and were presented today before U.S. Magistrate Judge Sarah L. Cave in Manhattan Federal Court. 

Major property and casualty insurance companies filed 26 lawsuits within a week—with 19 coming from Allstate.

News that inflated settlements and jury verdicts have undermined the stability of New York’s top insurer for taxis, black cars, and ridesharing is sending shockwaves through New York’s insurance and transit industries—and exposing a crisis in our courtrooms.

Ride-share insurers are failing the state or fleeing amid litigation abuse.

NYC Councilwoman introduces new legislation to alleviate rideshare insurance stress

American Transit, the largest insurer of the city’s for-hire vehicles, is at significant risk of failure. Its collapse could create a crisis that would take thousands of cars out of service.

New York city’s biggest insurer of taxis, black cars, Uber and other for-hire vehicles is on the brink of a collapse.

ATIC, is being sued in federal court by Uber Technologies Inc. for a “consistent pattern of failing to honor coverage for ride-share drivers in New York City who get into accidents.”