33-10-205. General powers of association -- standing.
33-10-205. General powers of association -- standing. (1) In addition to other rights provided by law, the association may:
(a) enter into contracts that are necessary or proper to carry out the provisions and purposes of this part;
(b) sue or be sued, including taking any legal actions necessary or proper for recovery of any unpaid assessments under 33-10-228 and to settle claims or potential claims against it;
(c) borrow money to effect the purposes of this part. Any notes or other evidence of indebtedness of the association not in default must be legal investments for domestic insurers and may be carried as admitted assets.
(d) employ or retain persons who are necessary to handle the financial transactions of the association and to perform other functions that become necessary or proper under this part;
(e) negotiate and contract with any liquidator, rehabilitator, supervisor, or ancillary receiver to carry out the powers and duties of the association;
(f) take legal action that may be necessary to avoid payment of improper claims;
(g) exercise, for the purposes of this part and to the extent approved by the commissioner, the powers of a domestic life or health insurer, but the association may not in any case issue insurance policies or annuity contracts other than those issued to perform the contractual obligations of the impaired or insolvent insurer;
(h) request information from a person seeking coverage from the association in order to aid the association in determining its obligations under this part with respect to the person. The person shall promptly comply with the request.
(i) take other necessary or appropriate action to discharge its duties and obligations under this part or to exercise its powers under this part.
(2) The association may render assistance and advice to the commissioner, upon request, concerning rehabilitation, liquidation, payment of claims, continuations of coverage, or the performance of other contractual obligations of any impaired or insolvent insurer.
(3) The association has standing to appear or intervene before any court in this state with jurisdiction over an impaired or insolvent insurer concerning which the association is or may become obligated under this part or before any court with jurisdiction over any person or property against which the association may have rights through subrogation or otherwise. The association's standing extends to all matters germane to the powers and duties of the association, including but not limited to proposals for reinsuring, modifying, or guaranteeing the covered policies of the impaired or insolvent insurer and the determination of the covered policies and contractual obligations. The association shall also have the right to appear or intervene before a court or agency in another state with jurisdiction over an impaired or insolvent insurer for which the association is or may become obligated or before a court with jurisdiction over any person or property against whom the association may have rights through subrogation or otherwise.
(4) The board of directors of the association may exercise reasonable business judgment to determine the means by which the association is to provide the benefits of this part in an economical and efficient manner.
(5) When the association has arranged or offered to provide the benefits of this part to a covered person under a plan or arrangement that fulfills the association's obligations under this part, the person is not entitled to benefits from the association in addition to or other than those provided under the plan or arrangement.
(6) Venue in a suit against the association arising under this part is in the first judicial district. The association is not required to give an appeal bond in an appeal that relates to a cause of action arising under this part.
History: En. 40-5808 by Sec. 8, Ch. 245, L. 1974; R.C.M. 1947, 40-5808(7), (8), (11); amd. Sec. 6, Ch. 195, L. 2003.