NEW YORK--Insurance regulators from two coastal states sparred yesterday over what the federal government's role should be in solving catastrophe insurance problems, with one saying the government should not intervene until insurers are essentially on life support.

Appearing during a panel of regulators convened at the Property-Casualty Joint Industry Forum here, Scott Richardson, South Carolina Insurance Department director, said, "I don't think we should go to a federal solution until we're on our backs, bleeding to death and breathing our last breath."

Mr. Richardson was reacting to a suggestion by James Donelon, commissioner of the Louisiana Insurance Department, who proposed a system of private insurance covering all perils backstopped by the federal government.

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