A divided House today passed its insurance bill - overriding complaints from its own members that it doesn't help consumers - to face stiff opposition in the Senate.

“We need to get the state out of business and get business back in here,” thundered House Insurance Chairman Dennis Ross, R-Lakeland.

Under the House bill, approved 79-40, rates for non-homestead property and homes over $1 million would no longer be regulated.

If second-home and business owners still could not find coverage, they would be eligible for Citizens Property Insurance, but at higher rates and subjected to extra charges to cover hurricane losses.

Citizens officials warn the Legislature the proposal is unworkable.

The state-run insurer of last resort stands soon to become Florida's largest property insurer, as other companies withdraw from the market or are seized by regulators. With no reserves to absorb losses, its deficits are paid by state residents. The bill for 2005 is $1.7 billion.

Democrats - who called the House bill a “sweetheart deal” for insurers - were frustrated in their failure to persuade House Republicans to hear proposals that would disband Citizens in favor of a state windstorm program akin to federal flood insurance.

“We've got to stop feeding the monster,” said Rep. Dan Gelber, D-Miami Beach, who said Citizens has ballooned uncontrollably, shifting its deficits onto state residents.

Rather than tackle difficult reforms, Gelber alleged, “we simply let the monster child grow.”

A few Republicans broke rank and voted with Democrats, including Rep. Bob Allen, R-Merritt Island, and Rep. Jeff Kottkamp, R-Cape Coral.

The House bill includes $920 million to cover part of Citizens' projected $1.7 billion deficit for 2005 claims. The Senate currently offers $750 million.

The House offers $500 million for home mitigation programs. The Senate's $55 million offer is expected to be increased substantially.