The senator in the letter said she was "particularly concerned about the hardship that this drastic decision could pose for working-class Long Island families," adding that she "would appreciate a detailed explanation of your decision not to renew coverage for these homeowners."
"While you may view this decision to be in State Farm's best interests, it is not in the best interests of Long Island homeowners, who need this coverage as a safety net in the event of a natural disaster or some other event," Clinton wrote.
Clinton also asked that the company "cooperate fully" with the New York State Insurance Department's reviews of the roughly 40 policyholder complaints it has received thus far related to State Farm's non-renewal plans. According to the department, under state law, insurers looking to non-renew a significant portion of their book of business must file a plan if the non-renewals exceed 4% of their book of business statewide.
State Farm spokesman Fraser Engerman said the company's decision to pull back somewhat in Long Island would affect just 1% of the company's New York policyholders, and that the non-renewals would be phased in over a three-to-six-year period, giving customers ample time to secure other coverage. He said State Farm was drafting a letter to Clinton to explain its position, just as it had done in response to similar concerns raised by fellow Senator Chuck Schumer (D-N.Y).
"What we clarified with Senator. Schumer was that we had to make a difficult decision that we no longer could continue property insurance for a relatively small number of policies where there is an unacceptably high risk of exposure to catastrophe," Engerman said. "We are proving notice of the action well in advance of the policyholders' renewal, and our agents will continue to do what they can to assist our policyholders as they look for alternative coverage."