376.734. Powers of association--legal counsel, who may be retained.
Powers of association--legal counsel, who may be retained.
376.734. 1. The association may:
(1) Enter into such contracts as are necessary or proper tocarry out the provisions and purposes of sections 376.715 to376.758;
(2) Sue or be sued, including taking any legal actionsnecessary or proper for recovery of any unpaid assessments undersubsections 1 and 2 of section 376.735;
(3) Borrow money to effect the purposes of sections 376.715to 376.758. Any notes or other evidence of indebtedness of theassociation not in default shall be legal investments fordomestic insurers and may be carried as admitted assets;
(4) Employ or retain such persons as are necessary tohandle the financial transactions of the association, and toperform such other functions as become necessary or proper undersections 376.715 to 376.758;
(5) Take such legal action as may be necessary to avoidpayment of improper claims;
(6) Exercise, for the purposes of sections 376.715 to376.758 and to the extent approved by the director, the powersof a domestic life or health insurer, but in no case may theassociation issue insurance policies or annuity contracts otherthan those issued to perform its obligations under sections376.715 to 376.758.
2. The association may join an organization of one or moreother state associations of similar purposes, to further thepurposes and administer the powers and duties of theassociation.
3. Whenever it is necessary for the association to retainthe services of legal counsel, the association shall retainpersons licensed to practice law in this state, and whoseprincipal place of business is in this state or who are employedby or are partners of a professional corporation, corporation,copartnership or association having its principal place ofbusiness in this state; provided however, that if, after a goodfaith search, such persons cannot be found, the association mayretain the legal services of such other persons as it chooses.
(L. 1988 S.B. 430 § 14)