"I am appalled at Allstate's announcement that they are breaking their promises to homeowners in the New York City area. This insensitive and wrong-headed decision will leave thousands without homeowners' insurance and could result in other carriers following suit, or at the very least, a dramatic increase in the cost of homeowners' insurance on Long Island. We cannot allow Long Islanders to go without homeowners' insurance or permit our insurance rates to skyrocket.

"With its decision not to renew homeowners' policies in the region, Allstate is turning its back on thousands of its loyal customers. By Allstate's own admission, their action is based upon their misguided decision to pursue too big a market share of our region's homeowners' policies. So because of their mistakes, they are punishing those who may need coverage the most. Allstate's action is nothing short of deceitful.

"As a member of the House Financial Services Committee, I will work with my colleagues from New York and other high-risk areas to make sure our insurance needs are met without a steep rate increase. The State of Florida experienced a similar challenge following the devastation of Hurricane Andrew in 1992. The state created reinsurance pools to better spread the risk from a future natural disaster. Late last year, Congress passed legislation creating a similar program to provide affordable terrorism risk insurance for those in high-risk areas.

"I have co-sponsored two pieces of legislation that will allow states to establish plans similar to what Florida did after Andrew. These bills would let states allow insurance companies to make tax-deductible contributions to a tax-exempt fund to pay for claims arising from the most devastating natural disasters.

"I will be pressing the Financial Services Committee to hold hearings on this matter as soon as possible. But regardless of whatever remedy comes out of Congress, Allstate should be ashamed of itself for this short-sighted and irresponsible act."