The Democrats said that the reforming of the state catastrophe fund has become especially important, in the wake of two destructive hurricane seasons and an announcement by Allstate earlier this year that the company is not renewing 100,000 policies in the state and will gradually discontinue writing most commercial property coverage in Florida.

Other companies are staying away from the Florida market, the lawmakers noted, forcing an increasing number of homeowners to turn to the state's insurer of last resort, Citizens Property Insurance Corporation, which by law is required to charge higher premiums than private insurers. Those companies that are writing coverage have requested rate increases as high as 42 percent.

"Our insurance market has not seen a crisis like now since after Hurricane Andrew," said Rep. Gelber. "With median incomes falling in Florida and skyrocketing increases in gasoline and other goods, we cannot continue to allow Floridians to risk going without hurricane insurance because they can no longer afford it."

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

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

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

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

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