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                                                                       EXHIBIT 3

                                PXRE CORPORATION

                  Revised By-Law Sections 8, 9, 10, 11 and 12,
            as adopted by the Board of Directors on October 16, 1997

                  Section 8. Chief Executive Officer. Subject to the direction
of the Board of Directors, the Chief Executive Officer shall have general charge
of the business, affairs and property of the Corporation and general supervision
over its officers and agents. If present, he shall, in the absence or disability
of the Chairman of the Board, preside at all meetings of stockholders and he
shall effectuate or cause to be effectuated all orders and resolutions of the
Board of Directors. He may sign, with any other officer thereunto duly
authorized, certificates of stock of the Corporation, the issuance of which
shall have been duly authorized (his signature to which may be a facsimile
signature), and may sign and execute in the name of the Corporation deeds,
mortgages, bonds, contracts, agreements and other instruments, except in cases
where the signing and execution thereof shall be expressly delegated by the
Board of Directors to some other officer or agent. From time to time, he shall
report to the Board of Directors all matters within his knowledge which the
interests of the Corporation may require to be brought to their attention. He
shall also perform such other duties as are given to him by these By-Laws or as
from time to time may be assigned to him by the Board of Directors.

                  Section 9. President. The President shall, in the absence or
disability of the Chief Executive Officer, perform all of the duties and, when
so acting, shall have all of the powers and be subject to all restrictions upon
the Chief Executive Officer. The President shall also perform such other duties
as are given to him by these By-Laws or as from time to time may be assigned to
him by the Board of Directors or the Chief Executive Officer.

                  Section 10. Vice Presidents. The Vice Presidents in the order
of their seniority, unless otherwise determined by the Board of Directors,
shall, in the absence or disability of the President, perform the duties and
exercise the powers of the President. They may sign and execute in the name of
the Corporation deeds, mortgages, bonds, contracts, agreements and other
instruments, except in cases where the signing and execution thereof shall be
expressly delegated by the Board of Directors to some other officer or agent.
They shall also perform other duties and have such other powers as the Chairman
of the Board, the President or the Board of Directors may from time to time
prescribe.

                  Section 11. Treasurer. The Treasurer shall have charge and
custody of, and be responsible for, all funds and securities of the Corporation
and shall deposit all such funds in the name of the Corporation in such banks or
other depositories as shall be selected by the Board of Directors. He shall
exhibit at all reasonable times his books of account and records to any of the
directors of the Corporation upon application during business hours at the
office of the



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Corporation where such books and records shall be kept; when requested by the
Board of Directors, he shall render a statement of the condition of the finances
of the Corporation at any meeting of the Board or at the annual meeting of
stockholders; he shall receive, and give receipt for, moneys due and payable to
the Corporation from any source whatsoever; and in general, he shall perform all
the duties incident to the office of Treasurer and such other duties as from
time to time may be assigned to him by the Chairman of the Board, the Chief
Executive Officer, the President, any Vice President or the Board of Directors.
The Treasurer shall give such bond, if any, for the faithful discharge of his
duties as the Board of Directors may require.

                  Section 12. Secretary. The Secretary, if present, shall act as
secretary at all meetings of the Board of Directors and of the stockholders and
keep the minutes thereof in a book or books to be provided for that purpose; he
shall see that all notices required to be given by the Corporation are duly
given and served; he shall have charge of the stock records of the Corporation;
he shall see that all reports, statements and other documents required by law
are properly kept and filed; and in general, he shall perform all the duties
incident to the office of Secretary and such other duties as from time to time
may be assigned to him by the Chairman of the Board, the Chief Executive
Officer, the President, any Vice President or the Board of Directors.



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