(a) The system has the general powers and authority granted under state law to an insurer or a health maintenance organization authorized to engage in business, except that the system may not directly issue a health benefit plan.
(b) The system may:
(1) enter into contracts necessary or proper to implement this subchapter, including, with the commissioner’s approval, contracts with similar programs of other states for the joint performance of common functions or with persons or other organizations for the performance of administrative functions;
(2) sue or be sued, including taking legal action necessary or proper to recover assessments and penalties for, on behalf of, or against the system or a reinsured health benefit plan issuer;
(3) take legal action necessary to avoid the payment of improper claims against the system;
(4) issue reinsurance contracts in accordance with this subchapter;
(5) establish guidelines, conditions, and procedures for reinsuring risks under the plan of operation;
(6) establish actuarial functions as appropriate for the operation of the system;
(7) assess reinsured health benefit plan issuers in accordance with Sections 1501.319-1501.323;
(8) appoint appropriate legal, actuarial, and other committees necessary to provide technical assistance in:
(A) the operation of the system;
(B) policy and other contract design; and
(C) any other function within the authority of the system; and
(9) borrow money for a period not to exceed one year to accomplish the purposes of the system.

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