fiascos to hit the Island.

It has been accused of "total amateurism'' for its handling of the collapse of Trinidad-based United Security Life Insurance Co., which has had a Bermuda office since 1964.

More than three percent of the entire population of Bermuda held long-term life, short-term health, and accident coverage with the company, which has local assets of $1 million and statutory liabilities of $2 million.

But those 2,000 policyholders stand to lose hundreds of thousands of dollars worth of coverage they have worked for years to obtain following the firm's demise.

The company was put under court administration in Trinidad on June 16 following a five-year battle between its owners and local insurance regulators.

And the court-appointed judicial manager in Trinidad, Mr. Brian Fortier, last night accused Bermuda's Registrar of Companies, which regulates local companies, of neglecting its duty.

He said the Government department had allowed United Security to continue issuing new policies in Bermuda for five years while it was technically insolvent.

"Bermuda's Government has been aware of the fact that, since 1987, United Security Life has been technically not meeting any of the insurance standards in any of the countries it was operating,'' he said.

"In Trinidad, our Insurance Supervisor stopped the company doing new business in 1987, which was the only sensible thing to do.

"It appears that Bermuda knew then that the firm was insolvent and yet did nothing.'' United Security was only stopped issuing new policies in Bermuda this February.

"Bermuda's whole handling of this is totally amateurish,'' said Mr. Fortier, an actuary with more than 30 years of experience.

Trinidad's Insurance Supervisor tried for five years to have a court administrator put in charge of the firm, while Bermuda sat back and ignored the situation, said Mr. Fortier.

Mr. Fortier said he made several telephone calls to Bermuda's Registrar of Companies, Mr. Malcolm Butterfield, but was never put through to him. "I left messages but he didn't return the calls,'' he said.

Mr. Butterfield attempted to fend off questions yesterday and repeatedly refused to comment on the matter.

Mr. Fortier said: "I'm at a complete loss to understand his lack of effort to sort out the situation.'' He added: "If Bermuda was really interested in life insurance they would have been on top of the company five years ago trying to help the Insurance Supervisor in Trinidad take the company over.

"If a manager had been appointed by the court in Trinidad in 1989/90, there would not nearly have been as many problems of the company as there are now because 1989 was when they really lost money.'' His anger deepened when Mr. Butterfield yesterday petitioned Bermuda's Supreme Court to wind-up United Security, although Mr. Fortier said this could not succeed because Bermuda has no jurisdiction over Trinidad.

"This process has been initiated in order to safeguard the assets of the Bermuda branch of the company,'' said a Registrar of Companies statement.

But Mr. Fortier, who has been given three months by a Trinidad court to come up with a rescue package, said the move showed a lack of understanding of how a long-term life company operated.

If this happened many policyholders would only get half or even a third of what they had paid in but, more importantly, would lose all their benefits, he said.

"This is the worst thing that can happen. Bermuda residents will lose out on valuable death benefits and other benefits if the Bermuda side of the operation is wound up.

"Several of the Bermuda policyholders are not going to be able to buy insurance ever again because their health has deteriorated or they have grown too old.

"Those who can still obtain it will have to pay far more to get that insurance because premiums have soared. Winding up is the last thing to do and only when you're really desperate.'' The best option would be to keep the company going and maintain reduced benefits, he added.

"After all, people take out life insurance for the death benefits, not the cash value. That's what they're in it for and that's what insurance is all about. Bermuda doesn't seem to understand that.

"Life companies in any civilised country are treated as special cases all the way down the line but not in Bermuda,'' he said.

"I think Bermuda is being precipitative taking this action. They are trying to ride roughshod over an appointed judicial manager on the grounds of `I know better than you do'.

"There's nobody in Bermuda's Government or Registrar of Companies who really understands what s long-term life insurance company is.

"Bermuda's Government should have either shut down the company about four or five years ago or they should have at least had the courtesy to wait for our first report.'' United Life has 11 staff in Bermuda and is managed by Mr. James DeCouto from offices in Hamilton.

Mr. DeCouto, who has been with the firm for 24 years, refused to answer a charge that he and his staff continued issuing new policies knowing the firm was insolvent.

"I was just hired to do a job,'' he said. "I really don't want to say anything. It could jeopardise my position.''