“As Florida's chief financial officer, I am concerned about the impact of the high insurance rates on people and the overall economy of our state,” she commented.

“At the same time, we must guard the long-term fiscal health of our state. I want to make certain that we are making decisions that are in the best interests of taxpayers in the future, as well as immediately.”

One area of concern noted by Ms. Sink is a provision in the Senate legislation that would effectively limit insurers' losses in the event of a major storm to $19 billion, with the state picking up the tab for 90 percent of losses beyond that amount.

“As we consider proposals that expand Florida's Hurricane Catastrophe Fund, we must set a fiscally-responsible limit that protects Floridians from being held liable for astronomical assessments, should we encounter truly devastating storms,” said Ms. Sink, who heads the state Department of Financial Services.

In their debate over the weekend, Ms. Sink encouraged the conferees “to consider setting the upper limit of the fund at a level that does not jeopardize Florida's financial strength for the future.”

Ms. Sink also cautioned against moving too rapidly to reform the state's insurer of last resort, Citizen's Property Insurance Co.

“I am concerned about making changes to Citizens Property Insurance Corporation before we have had an opportunity to evaluate the potential impact,” she said. Rather than making any drastic changes, Ms. Sink advised the legislature to ask Citizen's to establish a business plan which would be submitted when lawmakers begin their regular legislative session in March.

The state legislature began its special session devoted to property insurance issues on Tuesday and will convene again on Monday.

Meanwhile, the Property Casualty Insurers Association of America in a letter sent to every member of the Florida legislature, and appearing as an ad in several newspapers in the state, cautioned against what it called “quick fix” measures that could prove costly to the state and consumers in the long run.

Signed by PCI Chairman Thomas Tierney and Chief Executive Officer June Traina Holmes, the letter said: “In an effort to deliver on election campaign promises of 25-30 percent rate cuts, this reform package transfers the cost of paying for future hurricanes to generations of taxpayers, mortgaging our economic future on the hope that a major storm won't strike anytime soon.”

Additionally, the letter argued that the proposals being made, such as requiring insurers that write any coverage in Florida to also offer property and barring insurers from establishing “Florida-only” subsidiaries, will do little to protect homes or families, or to save them money.

“Instead, they require homeowners and businesses to pay for the economic losses from future hurricanes through enormous tax increases and insurance surcharges,” Mr. Tierney and Ms. Holmes wrote.

PCI proposed that to ease property insurance rates the state should strengthen building codes, provide tax credits for properties that are strengthened against wind damage, and that the state's catastrophe fund be expanded.

The current Senate proposal would address the catastrophe fund issue by effectively limiting insurers' losses to $19 billion, with the state paying 90 percent of claims beyond that, and both the House and Senate call for eliminating the exemption from the state's building codes for the state's Panhandle area.