Following the leader: David F. Provost succeeds Len Crouse at the helm of the nation's largest captive domicile.(Property/Casualty)

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When David F. Provost thought about applying for the top position in Vermont's Captive Insurance Division, he discussed the idea with the man he would replace, Len Crouse, and others in the division. Then, he simply walked upstairs to insurance commissioner Paulette Thabault's office, knocked on the door, and said he would be interested in filling the position.

A member of the division since 2001, Provost won appointment on Feb. 29 to the job of deputy commissioner, captive insurance, in the Department of Banking, Insurance, Securities & Health Care Administration. The move became effective June 1, when Crouse retired after 18 years at the helm. Provost was reportedly chosen over several other qualified applicants.

With 829 captive insurers as of early June, Vermont is by far the largest captive domicile in the United States. (Hawaii ranked second with 165.) And Grouse has long been considered the driving force and architect of Vermont's success. Grouse turned 65 in 2007 and decided in January it was time to retire, confident he was leaving behind "the best regulatory staff in the country, if not the world," as he said in a March interview with BestDay Audio. "The infrastructure we have is second to none. The management companies, lawyers, actuaries, banks and CPA firms are all based in Vermont."

People associated with the state's captive business acknowledged that Crouse would be a tough act to follow, but they also expect a smooth transition.

"The infrastructure is absolutely still in place," said …