Florida Republican Gov. Charlie Crist signed legislation into law today aimed at reducing property insurance rates in Florida.

"We have heard the calls for help from Floridians suffering from high insurance rates," Gov. Crist said. "With this legislation, the powerless have become the powerful, and the credit goes to the people of Florida for letting their voices be heard."

The legislation works to lower rates by allowing insurers to purchase more inexpensive reinsurance directly from the state Catastrophe Fund, provided the savings are passed directly to consumers.

It also seeks to foster competition by allowing the insurer of last resort, Citizens Property Insurance Company, to compete with private companies, and by requiring companies that offer auto insurance in Florida and property coverage in another jurisdiction to also offer property coverage in Florida.

In addition, the new law requires insurers to pay or deny claims within 90 days of notification and to return "excess" profits, which are determined by the state Office of Insurance Regulation.

It also eliminates an exemption from more stringent building codes that had been in effect for the state's Panhandle region.

Insurance groups have opposed the law, which they say will ultimately place more of the burden of recovering from a major storm on taxpayers and policyholders through assessments, and will serve as a disincentive to insurers looking to enter the market.

Lloyd's, which was one of the largest insurers sustaining losses from 2004 Florida hurricanes, said it understands the new law is an effort to address insurance price and availability problems, but it has concerns.

While the law's immediate impact on the market is unclear, Lloyd's said it worries about any legislation "that may have the unintended consequence of limiting the risks that go to the private insurance market," which "is best equipped to handle natural catastrophe risk."

Gov. Crist was joined at the signing ceremony by a gaggle of leaders and key lawmakers from the legislature, which passed the new law in a recent special session.

The new statute, promised Gov. Crist, is only the first stage of insurance reform in the state. The state legislature is due to meet for its regular session in March.