But while a majority of states have captive regulations on the books, some domiciles remain relatively inactive. Colorado, one of the first domiciles, which had nine in 2006, now has six captives and Rhode Island and three other domiciles have no captives licensed. In comparison, Vermont, which as the largest domicile, has around 552 captives.

Although the number of captives a domicile has licensed doesn't tell the whole story—it kind of does. From what I'm seeing, domiciles with the steadiest growth, especially in this down market, are those that have stayed the course, even through staff and regime changes. They're seeing growth now, while some others remain flat.

By staying the course, I mean that their state backs them up and sees the value of captives, even through changes in governors and insurance commissioners.

This has been the case with Vermont, whose governor is generally present to welcome annual conference attendees. The legislature's backing also is impressive and for its diligence, the state has been repaid with 1,400 jobs and more.

Hawaii and the District of Columbia are other examples and these are not the only ones.

I have to say, though, this isn't a big surprise. After years of covering captives, I can pretty well follow the domicile trends just by making phone calls—it's that evident.

For example, a few of the smaller domiciles that I've contacted answered with generic voice mail. Others weren't sure who I should talk to and occasionally I've left a message and been told too late that it hadn't been delivered. Captive managers and others making inquiries most likely have similar responses.

It appears that those forming captives are well aware of who is on the ball. This year the trend seems to by towards domiciles exhibiting continuity that have backing from their state. That includes passing legislation when needed and hiring dedicated staff.

A few domiciles appear to be victims of politics and this is too bad. Revolving door administrators and insurance commissioners and lack of staff—slowing down the approval process—can be red flags.

What seems to be working for domiciles is what works for any successful business—"steady as she goes." Those who follow this rule, in my estimation, will continue to see increased jobs, premium volume and other benefits in their state. Those that don't, won't.