At the urging of a regulator, Florida's state-run insurer oflast resort held an emergency meeting today and agreed to continueproviding building project windstorm coverage until year's end.

The Citizens Property Casualty Insurance Corp. board acted afterFlorida Chief Financial Officer Tom Gallagher wrote them last weekwarning there was "no viable [builder's risk] private-sectorcoverage available."

Meanwhile, a new partnership of Praetorian Financial Group andBritt Paulk announced yesterday that it was launching a builder'srisk program in Florida and the Gulf states to meet theshortage.

Ironically, Citizens said it decided to non-renew builder's riskpolicies after a request from Mr. Gallagher's office to justifywriting the policies.

A spokesman for Citizens, Rocky Scott, said the attorneys forcitizens became concerned at that point because they could not findstatutory authority to provide the coverage, so the insurer's boardvoted to end the program.

Mr. Gallagher, in his letter last Friday to board Chairman G.Bruce Douglas, said by removing the coverage, "many projects wouldbe jeopardized and the impact to local communities and businessescould be devastating." The board decision today, he said, meansworkers can stay on the job "and our economy can continue togrow."

Citizens carries about 6,000 builder's risk policies that coversome $4.5 billion in property under construction.

Mr. Scott said that in addition to a unanimous decision toextend the coverage to Dec. 31, the board has decided "there willbe increases in premiums for new and expiring policies.

He noted that builders have been able to get all-perilscoverage, but the windstorm protection was only available throughsurplus lines insurers that take the risk at huge cost. Mr. Scottmentioned that for one project the premium price quoted was$400,000.

The partnership announced by New York-based specialty insurerPraetorian Financial Group, and broker Britt Paulk of Carrolton,Ga., will provide windstorm coverage, according to spokesman AnsiValens, and will involve careful underwriting to limit the coverageto good risks, quality builders and superior construction.

Ultimately, Praetorian said, the new program will cover bothcommercial and large residential construction projects nationally,except in Hawaii.

Mike Pilla, chief underwriting officer at Britt Paulk, saidPraetorian is an "ideal partner" because of its excellent financialstrength and underwriting experience.

Praetorian, which has over $2 Billion in annual premium revenue,is a member of the Hannover Re Group.