R2007-236 AUTHORIZING AGREEMENT WITH BLUE CROSS BLUE SHIELD OF ILLINOIS

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� ' � I `` Examples of such actions brought against the Claim Administrator in connection with the design and administration of the Plan I'�� include,but are not limited to,the following: a. Any claim in connection with a claim for benefits under the Plan. b• Any claim based upon the disclosure of any information regarding a Covered Person by the Claim Administrator to the Employer. c. Any claim in connection with un-Timely and/or inaccurate eligibility data or Claim information data provided by the Employer to the Claim Administrator,or any such data provided by the Employer in a format not approved by the Claim Administrator. d. Any claim arising out of the electronic transfer of data i)from the Employer or the Employer's third party consultant and/or vendor to the Claim Administrator;or ii)from the Claim Administrator to the Employer or, pursuant to Section 5 of this Agreement,the Employer's third party consultant and/or vendor;including liability arising out of erroneous,misdirected,intercepted,incomplete or otherwise defective information and transfers of information,including,but not limited to,garbled transmissions,transmissions to third parties,and intercepted transmissions. e• Any claim arising from the Employer's use or posting of electronic files on the intranet and/or internet pursuant to Section 17 below. f• Any claim that may arise from or in connection with the Claim Administrator's suspension of Claim Payments due, to the Employer's failure to pay when due any amounts owed the Claim Administrator under this Agreement and/or the termination of this Agreement in accordance with Section 13.2 below. g• Any claim arising from the Employer's directive to the Claim Administrator to print Employer-assigned unique identification numbers on membership identification cards or to otherwise use such assigned numbers in violation of any applicable federal,state and local rules,laws and regulations. h. Any claim based upon Medicare Secondary Payer("MSP")laws or regulations. i. Any claim that may arise from or in connection with the Claim Administrator's issuance of Certificate(s)of Creditable Coverage based upon un-Timely and/or inaccurate data provided by the Employer to the Claim Administrator with respect to individuals whose coverage under this Agreement terminates. SECTION 12:AUDIT AND CORRECTION OF AUDIT ERRORS 12.1 Employer audits Claim Administrator. During the term of this Agreement and within one hundred eighty(180)days after its termination,the Employer or an authorized agent of the Employer(as mutually agreed to by the Claim Administrator and the Employer)may,upon at least ninety(90)days prior written notice to the Claim Administrator,conduct reasonable audits of the Claim Administrator's records in regard to Claim Payments and Net Claim Payments calculated on the basis of Claim Payments made under the Agreement.The Employer and such agent that have access to the information and files maintained by the Claim Administrator will agree not to disclose any proprietary or confidential information,and to hold harmless and indemnify the Claim Administrator in writing of any liability from disclosure of such information. Audits performed on a contingency fee basis will not be allowed or supported by the Claim Administrator.The Employer will be responsible for all costs associated with the inspection or audit. All such audits shall be subject to the Claim Administrator's external audit policy and procedures, a copy of which shall be furnished to the Employer upon request to the Claim Administrator. The audit period will be limited to the most recent twenty—four(24)months and no more than one(i)audit shall be conducted during a twelve(12)consecutive—month period. 12.2 Errors identified. The Claim Administrator shall be responsible only for the correction of errors identified in specific Claim Payments and Net Claim Payments subject to the terms and conditions of the Agreement and shall not be responsible for errors calculated to exist in a population of Claim Payments and Net Claim Payments on the basis of a sample drawn from that population. Further, the Claim Administrator has the right to implement reasonable administrative practices in the administration of this Agreement. 12.3 Claim Administrator audits Employen During the term of this Agreement and within one hundred eighty(180)days after its ternunation, the Claim Administrator may, upon at least thirty (30) days prior written notice to the Employer, conduct reasonable audits of Employer's membership records with respect to eligibility. -11-