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

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� �, w a � � .�• . �i' i� r� o ider the A�reemenl are contin- 3.7 �inze[y pa�menl. I e,�formance o1 all duUes and obli�ations of the Claim Ad� in St at r ui � genl upon the Timely paymenl o�'any amount owed the Claim Administrator by lhe C�mployer. SEC'I'ION 4: CLAIM YAYMLN7'S 4.1 C[ain:Adminisb�aloi�'s pnyment. Upon receip�of a Claim,the Claim Adminish�alor will make a Claim Payment provided that �II payments due �he Claim /ldministiator under the terms of the Abreement are paid when due. 4.2 En:ployei�'s liaGility. Any reasonable detennination by the Claim Administralor in ad.judicating a Claim under the Agree- ment thal a Covered Person is entiUed to a Net Claim Payment is conciusive evidence of the liability �f the Employer to the Claim Adminislra�or for such Net Claim }'aymen� pursuan� to Section 6 below titled"CLAIM SETTLEMENTS." 4.3 Cessation of Cluinr Paymenls. I1�the �mployer has f�ailed to pay when due any amount owed the Claim Administrator, the Claim Administrator shall be under no obligation to make any further Claim Payments until such default is cured. S�CTION 5: 1'RANSI'�R PAYM�N1' 5.1 Intent. In consideration of the Claim Administrator's obligations as set forth in the Agreement and at the end of each Transfer Payment Period,the Employer shall transfer to the Claim Administrator's account an amount equal to the 7'rans- fer Payment Period's Net Claim Payments plus the applicable service charges. The Transfer Payment Period shall be as indicated in the most current Fee Schedule specifications of Section l of this Exhibit. 5.2 Notif'ication of amount due. The Claim Administrator shall advise the Employer's Financial Division by�mail or fac- simile (at an email address or facsimile number to be furnished by the Employer prior to the effective date of the Agree- ment) of the amount of Net Claim Payments pursuant to the Agreement for which reimbursement has not been previously made by the Employer to the Claim Administrator, plus the applicable service charges. 5.3 4��hen Due. Transfer Payment must be made within twenty-four(24) hours of the Employer's notification by the Claim Administrator. If�any day on which a Transfer Payment is due is a holiday,such payment will be made on the next business day. Late payments are sub,ject to the penalties outlined in Section 7.3 oi'this Exhibit. SEC1'ION 6: CLAIM S�ITLEM�N1'S 6.1 Delernaining tinhal Employer owes. A Claim Settlement shall be determined for each Claim Settlement Period indicated in the most current Fee Schedule specifications of Section 1 oi'this �xhibit. The Claim Settlement shall reflect the sum of the following: �. All Net Claim Payments calculated on the basis of Claim Payments paid by the Claim Administrator in the particular Claim Setdement Period. b. All Net Claim Payments calculated on the basis of Claim Payments paid by the Claim Administrator in prior Claim Settlement Periods that have not been included in a prior Claim Settlement. c. The Administrative Charges and Gedits and other applicable service charges as indicated in the most current Fee Schedule specifications o1'Section 1 of this Exhibit and any applicable Supplemental Charge(s). "l�he sum of a., b., and c. above shall be refened to as tl�e Claim Settlement Total. 6.2 Eniployer unde�nayntent. If,within Ihe Claim Settlement Period, the Claim Settlement Total exceeds the Transfer Pay- ments,the Employer will pay the difference to the Claim Administrator.The Claim Settlement will be determined within sixty ((0) days from the last day of the Claim Setllement Period. The Claim Administralor will notify the Employer in writing of the results of the Claim Settlement.Any sums due the Claim Administrator will be paid"rimely by the Employ- e r. 6.3 Employer oi�e�/�ayment. I1�, within the Claim Settlement Period, the Transfer Payments exceed the Claim Settlement Total, the Claim Administrator may, at its option, pay such difi�erence to the Employer, apply the difference against �icsc n.�sn K�� o� -22-