BRADENTON, Fla. -Florida's Citizens Property Insurance Corp. has aggressively participated in auctions of its floating-rate debt and as of Monday had purchased about 44% of its outstanding $4.75 billion of taxable auction-rate securities.

The state-run agency, an insurer of last resort to provide Floridians with hurricane coverage, had been buying its own auction-rate securities for several weeks in an attempt to prevent failed auctions. But the highly unstable credit market finally produced Citizens first failed auction on Feb. 13, resulting in a reset at the penalty rate of 15%. Four other auctions were successful, but interest rates reset between 10% and 12%, significantly higher from when the securities were first sold.

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