reconsider its decision in July not to reopen hearings on the redomestication of Electric Mutual Liability Insurance Company to Bermuda.

Business Insurance reported this week that Kemper had written to Massachusetts Insurance Commissioner Linda Ruthardt asking her to reopen the hearings after a Bermuda judge had said the US regulator was best placed to decide whether she had been deceived.

Ms Ruthardt ruled on July 2 that she had "found sufficient grounds to warrant inquiry'' into whether EMLICO, a longtime General Electric liability insurer, misled Massachusetts regulators about their plans to move to Bermuda last year.

But she declined to reopen the matter because Kemper's charges that the move was part of a fraudulent plot to take advantage of Bermuda's creditor friendly liquidation laws were already being heard by Puisne Judge Richard Ground in the Supreme Court.

Mr. Justice Ground refused to halt EMLICO's winding up in July and said "the Massachusetts commissioner is best placed to determine whether or not her office was deceived''.

Business Insurance said Kemper Re counsel Richard J. Marcus wrote to Ms Ruthardt, saying: "In light of that comment, the Bermuda court clearly would not be offended -- and indeed would consider it appropriate -- if Massachusetts promptly commenced a hearing and investigation of whether its own public officials were deceived.'' A Massachusetts insurance division spokesman said division officials were reviewing the letter, Business Insurance reported.

Last week, 15 state and district government insurance associations filed suit against EMLICO's joint liquidators.

The insurance associations filed the writ in the Supreme Court after joint liquidators David Lines, Peter Mitchell and Gareth Hughes of Cooper & Lybrand refused them a vote at a creditors meeting last month.

COURTS CTS