Diversity is a word that has taken on an identity of it's own. It doesn't mean all inclusiveness. In fact it excludes anyone who has faith. What a shame. How do we help this family?
Divest from All-State. Make sure your friends know of this situation, and write them a courteous but firm letter expressing your opinion on the matter. This is not a cause for all out war, and there isn't that much you can do beyond shaming the company into doing what's right. So just make sure your friends and family know what Allstate did and why, and hopefully that will be enough.