health care insurer Dual-Plus, which has a captive firm in Bermuda.

Judge Robert M. O'Brien is expected to announce a decision on the firm's future over the next few days.

Dual-Plus was placed into conservatorship, the Californian equivalent of receivership, in September.

It is currently being managed by the California State Commissioner's office.

A spokesman for the California Department of Insurance said: "The judge took submissions from the company into consideration but did not make a ruling.

"We expect him to announce a ruling within a week or so.'' California Insurance Commissioner Mr. John Garamendi, whose post is a political appointment, wants to liquidate Dual-Plus.

Mr. Garamendi caused a storm locally when he said that Dual-Plus was "based in the unregulated waters of Bermuda'', although the firm is actually based in California.

Mr. Garamendi claimed that Dual-Plus had unlawfully transacted business in California by not having a Certificate of Authority or licence to operate.

In addition, he said Dual-Plus fell "well below'' the required capital and surplus necessary to be considered to be a "financially healthy surplus lines carrier which is able to pay all policyholder claims.

Mr. Garamendi wants to liquidate Dual-Plus.

His spokesman said: "If the department continues to operate this business, the company will go into liquidation.

"Last week's court hearing was just the next step in this process. We're just awaiting the outcome before we know if we can continue with the liquidation.'' Dual-Plus' captive company in Bermuda is managed by Jardine Pinehurst Management Company.

Jardine Pinehurst was referring all inquiries to Dr. Christopher Noble, who was Dual-Plus' chief information officer before it put into receivership.

Dr. Noble has vowed to fight Mr. Garamendi all the way in a bid to save the firm.

He has accused Mr. Garamendi of acting hastily and said that Dual-Plus' insureds were being made to suffer.

"These people are being denied Dual-Plus renewal coverage by the Department of Insurance,'' he said.

"Funds designated to cover claims cheques already issued have been frozen and medical procedures already authorised for our insureds have been cancelled.

"Several of the insureds have received this news while lying in a hospital bed.''