Florida legislators are heading into a special session next weekwith several unconstitutional proposals to resolve the state'sskyrocketing property insurance costs, an insurance industryofficial said.

Among the more radical proposals being considered are efforts inthe state House of Representatives to pass legislation barringinsurers from setting up Florida-only subsidiaries and forcing themto take their national profit picture into account when settingrates.

The proposal would also require companies selling other lines ofcoverage, such as auto, to also offer property coverage if they doso in another state.

Robert P. Hartwig, president and chief economist at theInsurance Information Institute in New York, said the provisionrequiring national profits be taken into account would run afoul ofinsurance laws in all 50 states.

"It means that profits implicitly generated in other lines andin other states would be used to subsidize homeowners' rates inFlorida," Mr. Hartwig said. "This is an issue likely to wind up infederal court." he said.

Mr. Hartwig said insurance is regulated by the states and onestate cannot impose rate increases in other states.

"This is a constitutional issue," he explained. "It sounds goodin the heat of political environment, but it is unlikely to besupported actuarially or legally."

Newly-elected Republican Gov. Charlie Crist promised similarsteps when he ran for office. He is now voicing support for thesemeasures, along with proposals in the state House and Senate toreform the state's insurer of last resort, Citizen's PropertyInsurance Company.

"The House and Senate plans incorporate my priorities and willbring significant relief to the people," Gov. Crist said in astatement today. "It is our duty to find a solution for Floridians,and I pledge to work with legislative leaders to reduce insurancerates and make a real impact on consumers' pocketbooks."

Other groups are seeking more targeted reforms designed to easethe burden of homeowners by better spreading risk. The CommunityAssociation Leadership Lobby, an advocacy group representingcondominium associations and homeowners' associations, has beenlobbying state lawmakers to allow for such associations to bandtogether and purchase insurance.

Under the current laws, according to Donna D. Berger, CALLexecutive director and a community association attorney with theFt. Lauderdale-based firm of Becker & Poliakoff, associationscan only be formed for reasons other than the purchasing ofinsurance coverage.

As a result, she noted, associations have typically formedwithin a small geographic area, whereas CALL's proposal would allowfor associations across the state to purchase coveragetogether.

"Because Florida law has specifically denied them the right toorganize to spread their insurance risk across communityassociations throughout the state, to date these common-interestownership communities have been unable to effectively act to haltthe skyrocketing insurance rates that are wreaking havoc on theircommunity finances," she said.

Ms. Berger said that CALL's proposal has been very warmlyreceived, adding that "everyone can see the value in it." Thelegislative language put forth by CALL was introduced in the stateHouse by Rep. Julio Robaina, R-Miami Dade, and has been included ina large hurricane reform draft bill in the Senate. Other lawmakers,including Rep. Andy Gardiner, R-Orange County, have also expressedsupport, she said.