The Virginia Property Insurance Association (VPIA or "the Association") was established by the Virginia State Corporation Commission for the purpose of Administering a program of equitable distribution and placement of basic property insurance in compliance with the urban property protection and reinsurance act of 1968. The program became effective on July 26, 1968, as the Virginia Insurance Placement Facility and was reorganized as VPIA October 1, 1973. VPIA issues policies on behalf of its members who bear the direct risk on a pro-rata basis. VPIA is responsible for the collection of premiums, payment of commissions, losses and loss adjustment expenses, and also general administrative expenses. Assessments are made on participating companies for funds as they are needed.