A US court has rejected the Massachusetts Insurance Commissioner's crusade to serve as receiver for insolvent Electric Mutual Liability Insurance Co.

Commissioner Linda Ruthardt has been fighting a long-running battle to serve as receiver of Emlico since it shifted its base to Bermuda in 1995.

But the Massachusetts Supreme Judicial Court ruled recently to refuse to allow Ms Ruthardt to serve as receiver.

The full court ruled on June 24 in a judgment which upheld an earlier decision by a single judge.

Soon after Emlico moved to the Island it claimed to have discovered $750 million of environmental claims.

But it only had $230 million in surplus -- leaving it short $520 million.

The main policy holder of Emlico is General Electric Co.

Settlements have been reached with other companies affected by the insolvency.