Texas Insurance Code 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.
Terms Used In Texas Insurance Code 463.101
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- Contract: A legal written agreement that becomes binding when signed.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005