The Florida House of Representatives has passed and sent to theSenate several key property insurance reform measures aslegislators prepare to wrap up this year's session Friday.

The lawmakers approved $920 million of sales tax revenues forhomeowner rate relief that will help fund the state's insurer oflast resort, the deficit-ridden Citizens Property InsuranceCorp.

In addition, several rate deregulatory measures were approvedthat include a 5 percent statewide flex band rating system.

Also approved was a mechanism to lower the funding threshold sothat smaller insurance companies could have access to the FloridaCatastrophe Fund.

William Stander, Tallahassee-based assistant vice president forthe Property Casualty Insurers Association of America, said themeasures are needed to promote market stability because“reinsurance prices have spiked in some areas and in some cases it[the coverage] is unavailable.”

Mr. Stander said many of the measures face possible revision asthey move to the Senate for the session that ends Friday.

While both houses are Republican, he noted the “trial bar hasbeen more successful in spreading its influence in the Senate.”

He feels some of the rate regulation measures that the insuranceindustry favors could be watered down in the Senate, just as theflex band was to a 5 percent statewide rise or 10 percent in anygiven territory. “You can't get much lower than 5 percent,” hesaid.

For rate hikes or decreases within that range, insurers wouldnot have to receive Office of Insurance Regulation approval.

The state takeover of three companies within the Tampa-based PoeFinancial Group putting nearly 300,000 policyholders' coverage inquestion was on the minds of the legislators, although Mr. Standersaid none of the legislation on the table–including a possiblecapital infusion plan now under discussion–was aimed at the threetroubled carriers.

After last year's record catastrophe losses, big writers such asAllstate and Nationwide have moved to reduce their windstormexposure, creating concern for a coverage crunch as the 2006hurricane season approaches.