[shadokat]

The advisor could potentially be held responsible if the chapter is violating national policy. Case in point: Advisor signs check for a sorority to cosponsor a fraternity who is having a party at their house. Something happens, let's just say someone falls down the stairs at the house breaking their leg. If the sorority has an alcohol free housing policy in place stating they will not cosponsor alcohol functions within fraternity housing (functions or facilities policies), then by signing that check, the advisor has violated the alcohol free policy, and most likely, the alcohol policy of the sorority. She will not be covered, just as the chapter will not be covered. The person who fell can now sue the national organization, who will be covered, the chapter, its members, and potentially the advisor, who will not be covered because by violating national policy, these folks forfeit their rights to the insurance coverage.

I hope that makes some sense. When it comes to lawsuits, people will go after everyone in very serious situations, and can often times get judgements. I'd be sure, as an advisor, that I was fully aware of what each check is being used for before I signed it.