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This entry was published on 2014-09-22
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SECTION 5206
Powers of corporation
Insurance (ISC) CHAPTER 28, ARTICLE 52
§ 5206. Powers of corporation. The corporation shall have the power:

(a) To use a corporate seal, to contract, to sue and be sued, to adopt
and amend by-laws and to exercise all powers necessary and convenient to
accomplish the purposes of this article.

(b) To prescribe, subject to the approval of the superintendent, the
policy or endorsement form to be issued by the members embodying the
coverage required by subsection (f) of section three thousand four
hundred twenty of this chapter.

(c) To provide for the investigation of any claim asserted by a
qualified person against a financially irresponsible motorist.

(d) To settle and pay any claim or judgment asserted by a qualified
person against a financially irresponsible motorist.

(e) To appear and defend, through attorneys representing the
corporation, on behalf of the financially irresponsible motorist or on
behalf of the corporation in any action brought against him or it as
provided in subsection (b) of section five thousand two hundred nine of
this article.

(f) To levy and collect assessments against its members for any
operating deficits of the corporation and for any funds required for its
operation and to enforce payment by legal proceedings.

(g) To borrow for its corporate purposes, with or without security,
and to pledge any of its assets as security for such loan. Notes or
other evidences of indebtedness of the corporation are legal investments
for domestic property/casualty insurance companies and may be carried as
admitted assets.

(h) To pay expenses reasonably incurred by the corporation in the
exercise of any of its powers.