number of insurance insolvencies in the United States is monitoring the collapse of Bermuda Fire & Marine.

Part of the inquiries of the Oversight and Investigations sub-committee, chaired by Republican John Dingell, involves tightening up reporting restrictions on overseas insurers doing business in the US.

A spokesman for the sub-committee said: "We are aware of what's been happening with Bermuda Fire & Marine and the effects on US policyholders. "We have been looking into insurance insolvency regulations on a worldwide basis for five years.

"We published a report in February, 1990, called `Failed Promises'. We're currently preparing another report for Congress.'' One of the areas currently being looked at is how foreign insurance regulations, such as those which exist in Bermuda, affect US policyholders.

The sub-committee has closely followed the liquidation of California-based Transit Casualty, which claims to be owed some $23 million by Bermuda Fire & Marine.

Transit Casualty is one of the largest property and casualty insolvencies in the history of the US, with liabilities estimated at more than $4 billion.

The company has approximately 900 reinsurers, one of which is Bermuda Fire & Marine, in over 30 countries and its liquidation is not expected to be completed until after the year 2000.

Creditors of Bermuda Fire & Marine are concerned that assets valued at more than $40 million were taken out of Bermuda Fire & Marine in 1991.

Directors of Bermuda Fire & Marine say that adequate reserves were left behind to take care of the company, with an extra $10 million thrown in.

But creditors argue that, if directors were not expecting future liabilities to escalate, there was no reason to split up the company into `good' and `bad' business.

The Dingell sub-committee spokesman said: "There's been a real recognition over the years in the US that a lot of US insurance companies which are now bankrupt had a lot of foreign reinsurance arrangements.

"We've studied the problems of Transit Casualty. We are aware of its involvement with Bermuda Fire & Marine and what has happened to this company.'' Many of these reinsurers, such as the KWELM group of companies, have gone into liquidation.

KWELM and Bermuda Fire & Marine were part of the disastrous London-based H.S.

Weaver's underwriting pool, which is the source of their multi-million dollar liabilities.

"The sub-committee is preparing a report looking into all of these things and expects to bring out a report early next year,'' he said.

"It covers the whole area of solvency regulations for insurance companies either operating or affecting the US. Bermuda, which has a lot of companies doing business in the US, will be part of this.'' The findings will form part of a proposed Bill, known as HR 1290. Under Congressman Dingell's proposed Bill, Bermuda-based insurers and reinsurers seeking to do business in the US would first have to waive their rights to financial secrecy under Bermudian law.

Offshore companies would also have to appoint an agent in the US upon whom may be served any legal process and who would have to "submit to the jurisdiction of any US court or state court of competent jurisdiction''.