American Transportation Group Insurance (ATGI) Risk Retention Group has filed a lawsuit against its former managing general agent, MVT Insurance Services, along with its principal, Amrit ‘Andy’ Singh in the Superior Court of New Hanover County, North Carolina.
The two current ATGI board members Shamshir Singh and Eleazar Rojas are also named in the lawsuit.
ATGI has alleged that MVT Insurance Services and Singh wrongfully exercised unfettered control of ATGI, misappropriated ATGI funds, and breached their fiduciary duties to ATGI.
Additionally, it alleged that board members Shamshir Singh and Eleazar Rojas breached their fiduciary duties to ATGI by failing to exercise any oversight or control over MVT or Singh.
The lawsuit highlighted that Singh “made every decision, negotiated every contract with other service providers, and otherwise ran the company as if it was his own”.
The lawsuit also suggested that less than a year into its operations, ATGI was already writing net premiums at three or four times the dollar amounts of the projections provided to and approved by the department of insurance (DOI).
This resulted in the North Carolina DOI notifying ATGI on 12 June 2019, that its business plan was not in compliance with N.C. General Statute § 58-22-15 (a) and (b), as its gross written premium far exceeded its approved business plan.
ATGI acting president Michael Hunter said: “We are taking this action to protect the interests of ATGI policy owners and shareholders and to hold those who have taken advantage of them accountable.”
On 3 April 2020, the ATGI board voted to terminate its relationship with MVT. NCDOI also placed ATGI into administrative supervision on 3 April.
NCDOI, commissioner Mike Causey’s order stated that “Singh, director of MVT, has exerted undue influence over American RRG although [Andy] Singh holds no officer or director position with American RRG.”
According to a statement from ATGI, MVT continues to hold itself out as the authorised representative of ATGI and continues to actively contact current policyholders and insurance producers.
ATGI president Michael Hunter said: “Marketplace participants should know that the NCDOI recognises the termination of MVT and that the current officers are operating with the department’s full approval and with the consent of the majority of the current lawfully constituted board.”
ATGI advised any members/policyholders to contact ATGI at admin@atgirrg.com to verify their policy status.
It also noted that any policyholders, insurance producers or others who are contacted by MVT or [Andy] Singh “are strongly encouraged to not engage with them” but instead report to the same point of contact as above.
Policyholders and agents should know that under the terms of the North Carolina supervision order, ATGI is not currently able to issue any new policies or renew current policies.
ATGI stated that they are continuing to work closely with the NCDOI and they hope to be able to resume issuing policies in the future.
“Any promises or representations by MVT or Andy Singh that they currently have the ability to issue policies on behalf of ATGI should be disregarded and reported to admin@atgirrg.com and the recipient’s local department of insurance. ATGI reserves the right to not honour any policy purportedly issued by MVT or Singh after 3 April 2020”, it added.
