New York’s insurance regulator ordered American Transit Insurance Co. to immediately find capital and explore a sale in a damning report laying out its severe financial condition.
The report laid out dozens of potential financial improprieties and accounting problems at the city’s largest insurer of taxis and for-hire vehicles, and warned that the consequences of the company’s failure could be devastating for tens of thousands of drivers.
The insurer known as ATIC has had reserves that are “massively deficient,” according to a letter from New York’s Department of Financial Services dated April 3 that was posted to the DFS website. ATIC must take “immediate action” to cure its insolvency and should “explore all possible option