(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; 1 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
(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
(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.
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