Sec. 5. GENERAL AUTHORITY. Pursuant to this article and the plan of operation, the association may:
(1) issue, or cause to be issued, nonprofit organization liability insurance policies that include primary and incidental coverages in amounts not to exceed $750,000 per occurrence and $1.5 million aggregate a year for an individual insured;
(2) underwrite association insurance and adjust and pay losses with respect to that insurance;
(3) appoint service companies to adjust and pay losses for the association; and
(4) purchase reinsurance.