liquidation by a court in California.

The move follows a bitter war of words between California Insurance Commissioner Mr. John Garamendi and the company's officers.

When Mr. Garamendi first obtained a court order allowing his department to seize control of the firm, he appeared to criticise the Island, referring to the "unregulated waters of Bermuda''.

DPIC is the captive insurer for the activities of American businessman Dr.

Christopher Noble.

A liquidation order was made against the firm last week by Los Angeles Superior Court.

Similar orders were made against health insurer Dual-Plus Insurance Administrators and Joseph W. Noble, M. D. Enterprises, Inc., which are both based in the US. The latter firm wholly owns DPIC.

Despite comments from Dr. Noble several weeks ago that "when our attorneys go into court, Dual-Plus will be vindicated'', it appears that the action was uncontested.

Ms Linda Goodman, manager for special receiverships for the California Department of Insurance, said recent figures showed that DPIC had debts of some $3 million and assets of less than $1 million.

She added: "I believe the liquidation actions were uncontested. Our job now is to liquidate these firms and secure as much as possible for creditors.'' DPIC was managed in Bermuda by Jardine Pinehurst Management Company, which has maintained in the past that a court in California had no jurisdiction over a company based in Bermuda.

Nobody at Jardine Pinehurst wanted to comment yesterday on DPIC being placed into liquidation.

DPIC's problems began in September when Mr. Garamendi took over its management, charging that the firm was conducting business in California without a licence and was operating in a "financially hazardous'' condition.

Mr. Garamendi said at the time: "I'm giving Dual-Plus a big minus for putting policyholders and creditors at risk for simultaneously trying to reap the benefits of being based in the unregulated waters of Bermuda, while at the same time illegally conducting business in the state without qualifying for a California licence.''