Florida's top insurance regulator, Tom Gallagher, has launchedan investigation into allegations of fraud against the state-runinsurer of last resort.

"Due to the serious allegations of made against Citizens'Property Insurance Corporation Chief Operating Officer PaulHulsebusch, I have directed our department's fraud detectives toimmediately launch a criminal investigation and subpoena alldocuments related to his case," Mr. Gallagher said in a pressstatement.

Mr. Hulsebusch resigned last Friday.

Department of Financial Services spokesman Bob Lotane said thatthe focus of the inquiry centers on claims adjusting contracts thatwere allegedly pulled from one organization and steered to anotherin exchange for kickbacks.

The allegations first came to light in a lawsuit between thecompeting adjusting firms, Mr. Lotane said.

The claims involved were submitted to state insurance carrierslast year and early this year in connection with the fourhurricanes that hit the state in 2004, Mr. Lotane said.

Citizens was created by the Florida Legislature in 2002 and isrun by an independent governing board whose members are appointedby various state officials.