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Texas Statutes (Last Updated: January 4, 2014) |
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INSURANCE CODE |
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Title 4. REGULATION OF SOLVENCY |
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Subtitle D. GUARANTY ASSOCIATIONS |
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Chapter 463. TEXAS LIFE AND HEALTH INSURANCE GUARANTY ASSOCIATION |
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Subchapter C. GENERAL POWERS AND DUTIES OF ASSOCIATION |
Sec. 463.101. GENERAL POWERS AND DUTIES
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(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 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) 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;
(6) 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
(7) 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.