Of the 29 risk retention groups that formed in 2006, almost half selected two states as their domiciles, with seven choosing Nevada and seven selecting South Carolina.
The District of Columbia–domicile of choice for more than a fourth of the RRGs formed in 2005, and third most chosen domicile in 2004–slipped to third place this year, with only four RRGs choosing it as their domiciliary state.
Montana, which passed its captive law in 2001, was selected by three RRGs as a domicile in 2006, equaling the total number of RRGs it has licensed since 2002.
Hawaii was not selected as a domicile this year, but was selected by a total of six RRGs in the last three years. Vermont was selected by three RRGs this year and four last year, compared with a total of 28 during the two previous years.
Prior to 1999, Vermont and Hawaii were selected most often by RRGs to serve as their domiciliary states. Beginning in 2000, however, as more states enacted captive laws, RRGs had more choices and began selecting other states.
Of the 238 RRGs listed in the Risk Retention Reporter at year-end 2006, the seven leading states serving as RRG domiciles are:
o Vermont (72)
o South Carolina (46)
o Washington, D.C. (35)
o Nevada (21)
o Arizona (19)
o Hawaii (16)
o Montana (7)
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