Tex.
Ins. Code Section 463.101
General Powers and Duties
(a)
The association may:(1)
enter into contracts as necessary or proper to carry out this chapter and the purposes of this chapter;(2)
sue or be sued, including taking:(A)
necessary or proper legal action to:(i)
recover an unpaid assessment under Subchapter D; or(ii)
settle a claim or potential claim against the association; or(B)
necessary legal action to avoid payment of an improper claim;(3)
borrow money to effect the purposes of this chapter;(4)
exercise, for the purposes of this chapter and to the extent approved by the commissioner, the powers of a domestic life, accident, or health insurance company, a health maintenance organization, or a group hospital service corporation, except that the association may not issue an insurance policy or annuity contract other than to perform the association’s obligations under this chapter;(5)
unless prohibited by other law, implement or file for an actuarially justified rate or premium increase in accordance with the terms and conditions of a covered policy or contract;(6)
to further the association’s purposes, exercise the association’s powers, and perform the association’s duties, join an organization of one or more state associations that have similar purposes;(7)
request information from a person seeking coverage from the association in determining its obligations under this chapter with respect to the person, and the person shall promptly comply with the request; and(8)
take any other necessary or appropriate action to discharge the association’s duties and obligations under this chapter or to exercise the association’s powers under this chapter.(b)
If not in default, a note or other evidence of indebtedness of the association is a legal investment for a domestic insurer and may be carried as an admitted asset.
Source:
Section 463.101 — General Powers and Duties, https://statutes.capitol.texas.gov/Docs/IN/htm/IN.463.htm#463.101 (accessed Jun. 5, 2024).
