TALLAHASSEE, Florida (Reuters) — Florida lawmakers have passed bills extending a rate freeze and making it easier to join the state-run insurance pool that now covers more than 1.3 million policyholders across the hurricane-racked state.In the waning hours of the 2007 session, members in both the Senate and the House approved changes to Citizens Property Insurance Corp., the state-run insurer pool that is now the largest property insurer in Florida.

For Citizens' customers, the bill extends for a year a rate freeze that was to end Jan. 1. The extension is expected to save Citizens' customers at least $350 million state-wide.

The proposal also allows customers of private insurance companies to choose Citizens if their private policy is more than 15 percent higher. Current law requires private rates be 25 percent higher before a customer can jump.

The plan included provisions backed by Gov. Charlie Crist, a Republican who was expected to sign the bills passed last week, to require national insurance companies to provide more financial data and factor in national profits when determining Florida rates.

The plan eliminates the creation of Florida-only subsidiaries, known as "pups," that critics said allowed insurance companies to exaggerate financial risks. Allstate and State Farm and others that already have Florida-only subsidiaries would not be affected.

"I hear some groans from insurance lobbyists," Crist told a cheering crowd at a post-session speech. "'Tough!' This is what's right. We work for the people."

In January, state lawmakers made sweeping changes to Florida's property insurance market in response to constituent outrage over high rates and the inability to obtain coverage. Among the most controversial items was to let Citizens compete more directly with private insurers.

Other changes included allowing homeowners to take higher deductibles or forgo wind coverage altogether.

Insurers are required to submit new rate schedules based on the changes. State officials, who earlier said the changes would cut rates an average of 25 percent, have been disappointed as proposed rate reductions have been lower.

While the bill was passed with overwhelming majorities in both chambers last week, not all lawmakers were pleased with the legislation. They argued it is unfair to require inland policyholders to bail out Citizens in the event of a catastrophic storm. Under current law, all policyholders would be assessed a fee to pay for hurricane damage.

"If someone wants to live in a very high-risk area, that's their right," said Rep. Don Brown of DeFuniak Springs. "It is not their right to expect that others will fund that choice."