is sceptical of assertions by EMLICO's main policyholder, General Electric Co., that EMLICO's insolvency came as a surprise. Mr. Levin, who was quoted by the Wall Street Journal (WSJ), said, "You would presume that (EMLICO's) chief financial officer would have said, `My God, if these trends continue, we are going to be insolvent.' '' And Massachusetts insurance regulators believe they have received evidence from Coopers & Lybrand that supports allegations by reinsurers that EMLICO and its main policyholder General Electric Co. (GE) conceived and executed a conspiracy to move EMLICO to Bermuda, and drop a bill for GE's insured pollution liabilities in the lap of its reinsurers. A Massachusetts regulator has told Bermuda's Registrar of Companies that he found it "troubling'' that controversial Electric Mutual Liability Insurance Co. (EMLICO) had contacts with Bermudian liquidators months before they were domiciled here. WSJ reported that despite claims by GE and EMLICO the insurer had no prior plan to declare insolvency, EMLICO consulted with liquidation specialists months before it sought permission to relocate to Bermuda. EMLICO sent memos December, 1994 and February, 1995 to Coopers & Lybrand liquidation specialists David Lines and Peter Mitchell in Bermuda and Christopher Hughes in London. GE had recommended Coopers & Lybrand do certain work for EMLICO.

The two chartered accountants with Cooper & Lines were later named EMLICO joint liquidators by GE as the chief creditor. A recent letter from Kevin McAdoo of the Massachusetts Division of Insurance to Bermuda's Registrar of Companies, Kymn Astwood, called EMLICO's contacts with the Coopers liquidation specialists before the insurer's relocation "troubling''.