NU Online News Service, Sept. 9, 11:33 a.m.EDT

The Vermont Captive Insurance Association said it has selectedRichard Smith, a veteran Vermont state official with "politicalsavvy," as the group's new president.

Mr. Smith of East Montpelier, Vt., is currently the deputycommissioner of Vermont's Public Service Department, whichrepresents taxpayers in matters regarding utilities water andwastewater.

The VCIA board of directors announcement said Mr. Smith wasselected following an extensive national search, and noted Mr.Smith's "extensive experience in state government," includingprevious service as deputy commissioner of Economic Development andpolicy analyst in the Office of the Governor, "was crucial to thesearch committee's decision."

Mr. Smith will fill a post that is currently held by MollyLambert, who announced in April she was nomininated for a job withthe U.S. Department of Agriculture as Vermont-New Hampshire statedirector for rural development, which is pending confirmation.

In announcing the choice, Michael Bemi, chairman of the VCIAboard and the search committee, said, "The search attracted a largepool of incredibly talented individuals from around the country andwe are confident that we have selected the best of the best inRichard Smith."

He added, "Richard will bring a perfect blend of politicalsavvy, ease in relating to CEOs regarding their complex enterprisemanagement choices and years of significant administrativeaccomplishments to this very important role."

VCIA said Mr. Smith will begin his duties Oct. 15 at its officesin Burlington, Vt.

The VCIA describes itself as the largest captive insuranceassociation in the world, representing nearly 500 members.

Vermont is the largest domicile in the United States for captiveinsurance and the third largest domicile in the world. The industryis responsible for nearly 1,400 full- and part-time jobs in Vermontand in 2008 contributed $24 million dollars in premium taxes to thestate's general fund.

In a statement Mr. Smith said, "I am honored and excited aboutthis opportunity to work with an outstanding organization thatrepresents such an important sector of the financial servicesindustry. VCIA remains an essential institution for captiveinsurance as well as an integral pillar of Vermont's economy."