Virginia Law

Application for membership in an association shall be made on a form approved by the commission. The application shall include (i) acknowledgement of the execution of the indemnity agreement and power of attorney required by 14VAC5-370-120, (ii) the applicant's current financial report on a form approved by the commission demonstrating the solvency of the applicant and its financial ability to meet its obligations as a member and (iii) the approval by or on behalf of the board of the applicant's membership. A copy of the completed application shall be filed with the commission by the board within seven days after the effective date of coverage whereupon the commission shall be deemed to have granted authorization for the applicant to become a member of the association as of such effective date. The commission may, after notice to an association, require that applications for membership in such association be approved by the commission before the applicant may become a member of the association. The association shall at all times have in its possession, in a form acceptable to the commission, a current financial report for each member. The requirement for having a current financial report as a condition of membership or otherwise shall not apply to governmental entities which are not required by law to have an annual audit performed.

The commission may, at any time, withdraw approval of any member after giving proper notice if the commission determines that the member is not in compliance with this chapter. Prior to withdrawal of approval by the commission or any revocation or termination by the association, the member will be considered to be a member in good standing with the association. Any member who cannot demonstrate its solvency and its financial ability to meet its obligations as a member shall be removed from membership in the association by the board.