Vincent J. Fenerty, Jr.
Executive Director
Philadelphia Parking Authority
701 Market Street
Suite 5400
Philadelphia, PA 19106

September 13, 2013

RE: Ocean Risk Retention Group, Inc. Liquidation

Dear Mr. Fenerty:

Please allow this correspondence to serve as notice of a significant issue with regard to the liquidation proceedings involving Ocean Risk Retention Group, Inc., a taxicab insurance company, on behalf of The Greater Philadelphia Taxi Association ("GPHLTA"). The attached is a copy of the liquidation Order for your reference.

GPHLTA’s members are extremely concerned about the handling of this issue by the PPA. As you may know, when an insurance carrier is in liquidation, the policies of insurance are essentially nullity and the carrier no longer has a duty to defend or indemnify its insured. Accordingly, any taxicabs that were on the road on or after September 6, 2013 were uninsured and, therefore, not only a danger to the public at large but to PPA licensed drivers. In the event of an accident, more likely than not, there would be no recourse for the injured including lack of payment for medical services.

It is my understanding that the PPA was made aware of this issue at least 2-3 days ago, if not more. GPHLTA’s members want to know if all vehicles insured by Ocean Risk were immediately taken off the road. If not, why were they allowed to continue operating without insurance? Furthermore, GPHLTA would like some type of oversight by the PPA as the financial stability of the insurance carriers issuing policies with some yearly approval process. As you can imagine, this does not make the industry look good in the eyes of the public and changes need to be implemented in order to avoid this from happening again.

To that end, if you care to discuss further, feel free to contact me at any time.

DRA/th

cc:
Joseph T. Ashdale
Al Schmidt
Andrew K. Stutzman
Alfred W. Taubenberger
Russel Wagner, CPA
Karen W. Wrigley, D.O.
Jim Ney, Director
Dennis Weldon, Jr., Esquire
William Schmid

See original letter here: Board_Letter_ORRG_issue

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