Implies a person or thing was considered but isn't suitable or allowed anymore. He's been ruled out of the selection process because he didn't meet the criteria.
Pro Tip 2/3
Not Always Negative
Can indicate relief or a positive outcome when an unwanted option is dismissed. Fortunately, the storm has been ruled out of hitting our coast.
Pro Tip 3/3
Consequence of Failure
Often used when someone or something falls short of a standard or expectation. After failing the inspection, the restaurant was ruled out of the food festival.