Of the 29 risk retention groups that formed in 2006, almost halfselected two states as their domiciles, with seven choosing Nevadaand seven selecting South Carolina.

The District of Columbia–domicile of choice for more than afourth of the RRGs formed in 2005, and third most chosen domicilein 2004–slipped to third place this year, with only four RRGschoosing it as their domiciliary state.

Montana, which passed its captive law in 2001, was selected bythree RRGs as a domicile in 2006, equaling the total number of RRGsit has licensed since 2002.

Hawaii was not selected as a domicile this year, but wasselected by a total of six RRGs in the last three years. Vermontwas selected by three RRGs this year and four last year, comparedwith a total of 28 during the two previous years.

Prior to 1999, Vermont and Hawaii were selected most often byRRGs to serve as their domiciliary states. Beginning in 2000,however, as more states enacted captive laws, RRGs had more choicesand began selecting other states.

Of the 238 RRGs listed in the Risk Retention Reporter atyear-end 2006, the seven leading states serving as RRG domicilesare:

o Vermont (72)

o South Carolina (46)

o Washington, D.C. (35)

o Nevada (21)

o Arizona (19)

o Hawaii (16)

o Montana (7)