On May 8, 2009, I received a casual letter from State Farm in which it stated I was being dropped as a homeowner property subscriber. The letter did not mention that I had been a dutifully paying client since 1991 and that I have never made a claim. Your letter, in essence, states that you are afraid some catastrophic natural disaster may occur and that you are not willing to risk having to pay out should I outlive my property under those conditions.
Your letter states I am not being renewed because my property is "located in close proximity to the coast." The location has not changed since you accepted my money for your insurance each year for 19 years. What gives you the right to decide that you can simply cut and run and leave your clients stranded?
I shall not leave your letter and its contents unchallenged. With the knowledge your referral to NYPIUA (New York State Property Underwriters Association) only gets me fire and vandalism and not liability, with the knowledge that NYPIUA is funded by the taxpayers of N. Y. State (me), with the knowledge that you accepted my payments for 19 years without paying out a cent, and with the knowledge that you are allowed to merely send me a form letter terminating our fiduciary relationship without your incurring any penalty whatsoever, I intend to do the following:
Petition the NYS legislature to fine State Farm et.al. a substantial amount of money for dumping the clients you are afraid you might, one day, have to pay, plus an annual fine equivalent to the number of years your clients have been with your company. These fines will be deposited into the NYPIUA fund so as to alleviate some financial responsibility from New York State taxpayers. The goal being here, if you have to pay not to insure those you've dropped, perhaps you will reconsider dropping us. Moreover, if you insist on dropping our homeowners, as a punishment, you should not be eligible to write any other insurance in New York State.
Letters Gentlemen, the goal of every company is to derive a profit with minimum risk. By eliminating the most risk on your books, you have done just that. You have created an environment that is totally profitable for you because you can. However, the profit about which I write is derived at the expense of the N.Y.S. taxpayer. Consequently, as a person harmed by your cavalier decision, I intend to take my concerns to our state and our federal government. You should not be able to pull this maneuver unchallenged.