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I would seriously hire a lawyer.
There has got to be something in your schools bylaws that states an organization can be recognized without insurance.
I mean seriously, if she is going to bias greek orgs for not having insurance, then hell... EVERY ORGANIZATION on campus should have insurance or be cut. I know a small ballroom dance club on your campus doesn't have insurance. If they don't, well then they should be banned too.
Tell her that if she wants you all to go national... tell her to go find a national that will sponsor you and form a colony in that small given time frame. From hearing stories from past sisters of mine, and even reading on here... colonization can take a REALLY long time. And to find a group that really fits your values as a house can be even harder. But obviously you don't want to forgo your letters.
I mean they said you don't have a hazing problem so what's the big deal. Is the advisor THAT paranoid that everything is going to go to shit once she comes aboard that she has to eliminate any POTENTIAL problem she MAY encounter while in office???? Please...
If you had been on campus THAT long, I would think that would be insurance for itself. OBVIOUSLY you are a stable organization.
BAHHH. I'm pissed off for you.
LOCAL PRIDE!
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