agreement establishing a US receiver to oversee environmental claims of as much as $2 billion as the insurer is liquidated.

The agreement is a blow to Kemper Reinsurance Co. and other reinsurers because it allows the insurer, Electric Mutual Liability Insurance Co., to be liquidated in Bermuda, where it moved shortly before filing for liquidation.

"We think that the most important thing is that this will allow for a prompt resolution of the liquidation process in Bermuda,'' said Larry Rasky, an outside spokesman for GE.

The reinsurers fought Electric Mutual's move in court. They contended that by fleeing to the friendly legal confines of Bermuda, Electric Mutual hoped to get bigger payments in liquidation for environmental claims than it would have received in Massachusetts.

Claims against Electric Mutual for GE's environmental clean-up and liability costs will be overseen by Massachusetts Insurance Commissioner Linda Ruthardt, according to the department. The claims could total an estimated $2 billion.

"The commissioner believes that this settlement is fair, balanced and in the public interest,'' the department said in a statement.

Ruthardt also asked the Supreme Judicial Court in Massachusetts to initiate liquidation proceedings against Electric Mutual. The settlement still must be approved by the court.

Ruthardt will review any claims before forwarding them to Bermuda regulators and oversee any environmental coverage disputes. The claims will be settled under Bermuda law.

Electric Mutual moved to Bermuda in July 1995 and filed for liquidation a few months later.