The article highlights the current insurance crisis in New York, particularly affecting taxis and for-hire vehicles. With American Transit Insurance Company (ATIC) insolvent and few willing carriers in the market, the crisis is largely attributed to New York's unique no-fault insurance laws. These laws promote quick compensation but also facilitate fraudulent claims, especially due to the high PIP requirements for taxis. Racketeering lawsuits illustrate the widespread abuse within this system, resulting in filers facing soaring premiums and contributing to the market's instability.
New York's no-fault insurance system, intended for quick compensation, has become a breeding ground for fraud, resulting in skyrocketing premiums and insurer insolvency.
Fraudulent claims under the unique no-fault mandates for taxis have led to 75% of insurance fraud reports, causing significant market exits by insurers.
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