itf TRANSIT INSURANCE COMPANY June 9, 2016 Members of the New York State Senate and Assembly: CC: Assemblyman Cahill American Transit Insurance Company (ATIC) is the largest provider of commercial for-hire vehicle insurance in New York State with 44 years of experience servicing this unique type of risk. We insure nearly 55,000 vehicles across many of the Taxi and Limousine Commission’s classifications including yellow taxis, traditional livery vehicles, and Transportation Network Company vehicles. American Transit Insurance submits this letter as a great supporter of the for-hire industry and we are steadfastly committed to the important role that we and other insurers play in the health and continued viability of the for-hire market in New York State. After careful examination of the New York Senate and Assembly Rideshare Bills, ATIC felt compelled to formally object to the proposed increase in insurance liability minimums, The insurance requirements set forth are simply too high for us to effectively offer coverage. The proposed 600% increase in coverage minimums does not seem to be based on any sort of actuarial science and will most certainly lead to a wide range of unintended consequences. At the current liability minimums, insurance fraud has developed into one of the quiet scourges of NYC and NY State. New York's highly litigious nature and the well-documented challenges of doing business in one of the few remaining “No-Fault” States fosters an environment ripe for fraudulent behavior by a number of parties. Ten years ago, ATIC’s average no-fault claim was $7000. Today it is nearly $35,000 per claim. This increase has been driven by a rise in staged accidents, fraud rings often with ties to organized crime, unscrupulous doctors and medical staff, and exploitative personal injury attorneys pushing claimants into unnecessary medical treatments. The increase in claim expense manifests itself in squeezed margins on insurers and, in turn, increased premiums passed on to drivers. Putting more liability money in play will not necessarily make the riding public safer, but it will certainly make the price of insuring a for-hire vehicle more expensive for the working class drivers of New York State. ‘American Transit encourages you to re-examine how these liability minimums were decided upon and give deeper consideration to the far-reaching impacts that these increases would have on the industry as a whole. @spectfllly, ‘ward McGettigan Jr. President and CEO ONE METROTECH CENTER * BROOKLYN, NEW YORK 11201-3948 « TEL: 212-857-8200 + 1-800-683-ATIC oanatooe