Ms. Lambert faces her first VCIA conference in mid-August. She said the state's captive activity "is very busy. This year will be a record-setting year."

On an average over the 21 years Vermont has had captive legislation, the state has licensed about 25 captives per year, she said. "In the first half of 2002 we've already licensed 26 new captives, and the fourth quarter is normally the busiest quarter."

She continued that "the industry is very busy and those familiar with the industry know why. It's because the commercial insurance market has hardened significantly." Consequently captives are becoming "much more attractive to a variety of different companies."

VCIA, she said, is "very well positioned to serve" its more than 300 members.

The association's significant rise in membership, from 270 members just a few months ago to 320, is "another indication of the vitality of this industry," she noted.

During the coming year, she said, the association has two main goals. One is a focus on education.

"It is critically important that captive industry participants remain very well informed" about changing laws, changing uses of captives, and new industry trends. "Education at all levels is going to be a key part of VCIA's activities," Ms. Lambert said.

The conference format includes both basic seminars and accelerated courses.

The other emphasis, she said, is legislation, both state and federal. One focus, she said, is the effort to expand the federal Risk Retention Act, which would allow captives to expand the types of insurance they can write, excluding workers' compensation.

Ms. Lambert said the association is "monitoring the discussion at the federal level and is working with its partners in Vermont's state government on some possible updates to the captive statute."

On a state level, she said, VCIA is working in partnership with the state government to review and update captive statutes in Vermont.

"One thing Vermont has done very well, which has kept it at the head of the game in terms of domestic domiciles, is they have constantly reviewed and revised captive statues," she explained.

This has been possible because "there is great receptivity on the side of state regulators to constantly revise and improve Vermont's captive statutes to stay ahead of the curve," she said.