(1) The board of directors may cancel the membership of the fund granted under rule 4 in the following cases:-
(a) In case of cancellation of the certificate obtained for non-life insurance business.
(b) In case of non-payment of insurance fee or amount to be paid to the fund.
(c) Failure to do the work required to be done in accordance with this regulation.
(2) Before canceling the membership of an insurer in accordance with sub-rule (1), the board of directors shall provide a reasonable opportunity to the insurer who has received such membership to submit a defense in his favor.