New York City's biggest insurer, American Transit Insurance Co., is at risk of collapse due to over $700 million in net losses, threatening coverage for 60% of the city's taxis and for-hire vehicles.
The rise in fraudulent claims has been exacerbated by larger claim sizes driven by settlements and jury awards, with scam rings exploiting the city’s high commercial-vehicle coverage requirements.
These scams involve unethical legal practices and fraud rings, including gangs recruiting vulnerable individuals to stage accidents and undergo unnecessary surgeries to inflate insurance payouts.
Accused killer Rex Heuermann exemplified this trend, having filed a $5 million lawsuit for an alleged injury sustained by a taxi, amidst broader issues in the insurance landscape.
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