Democratic representatives in the Florida House unveiled a planyesterday to restructure the state's Hurricane Catastrophe Fundinto a new entity modeled on the National Flood InsuranceProgram.

The proposal would establish a new state Hurricane InsuranceFund, which would offer coverage up to $500,000 with varyingdeductibles. The policies would be written by insurance companiesoffering homeowners insurance on behalf of the fund, in an effortto provide homeowners with a single point of contact.

"As a private insurance agent, I know just how unstable themarket is and how expensive policies can be for most Floridians,"said Rep. Priscilla Taylor, D-Riviera Beach, the bill's sponsor."With this proposal, it is our goal to make hurricane insuranceaffordable for Floridians once more."

The proposal was announced by Rep. Taylor, along with DemocraticLeader Chris Smith, D-Ft. Lauderdale, and State RepresentativesFranklin Sands, D-Weston; Arthenia Joyner, D-Tampa; Anne Gannon,D-Delray Beach; and Dan Gelber, D- Miami Beach.

The Democrats said that the reforming of the state catastrophefund has become especially important, in the wake of twodestructive hurricane seasons and an announcement by Allstateearlier this year that the company is not renewing 100,000 policiesin the state and will gradually discontinue writing most commercialproperty coverage in Florida.

Other companies are staying away from the Florida market, thelawmakers noted, forcing an increasing number of homeowners to turnto the state's insurer of last resort, Citizens Property InsuranceCorporation, which by law is required to charge higher premiumsthan private insurers. Those companies that are writing coveragehave requested rate increases as high as 42 percent.

"Our insurance market has not seen a crisis like now since afterHurricane Andrew," said Rep. Gelber. "With median incomes fallingin Florida and skyrocketing increases in gasoline and other goods,we cannot continue to allow Floridians to risk going withouthurricane insurance because they can no longer afford it."

The changes, the Democrats said, would stabilize the market,lower rates through increased competition, and improve theinsurance industry's efficiency in dealing with hurricanes.

"The Hurricane Insurance Fund will undoubtedly provide stabilityto Florida's hurricane insurance market and yield savings forFlorida's homeowners," said Rep. Joyner. "Additionally, Floridianswill be able to work with their current private insurance agent,which will increase efficiency and promote better customerservice."

Should the proposed Hurricane Fund be overwhelmed by a majorstorm or series of storms, as the NFIP has been by HurricaneKatrina, the fund would be allowed to issue bonds, borrow from afederal disaster fund, if one is created, or purchase reinsurance,if needed.

The savings for homeowners would be immediate, the lawmakerssaid, as the fund is not required to be profitable or pay taxes,and it would create more predictable risk and competition betweeninsurers seeking to write the policies.

"Our proposal will guarantee Floridians that no matter wherethey reside, the state is working to provide them with moreaffordable insurance," said Rep. Gannon. "We look forward toworking with leadership in a bipartisan manner to help Floridiansbefore onset of the next hurricane season."