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

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�. � , r 4.2 Claim Administrator Responsibility.The Claim Administrator shall have no responsibility for or liability with respect to the compliance or non-compliance of the Plan with any applicable federal, state and local rules, laws and regulations; and the Employer shall have the sole responsibility for and shall bear the entire cost of compliance with all federal,state and local rules, laws and regulations, including, but not limited to, any licensing, filing, reporting, modification requirements and disclosure requirements as may apply to the Plan,and all costs,expenses and fees relating thereto;provided,however,the Claim Administrator shall have the responsibility far and bear the cost of compliance with any federal,state ar local laws as may apply to the Claim Administrator in connection with the performance of its obligations under this Agreement. 4.3 Litigation. Each party shall,to the extent possible, advise the other party of any legal actions against it or the other party which involve the Plan or the obligations of either party under the Plan or this Agreement.The Employer shall undertake the defense of such action and be responsible for the costs of defense;provided, however, that the Claim Administrator shall have the option,at its sole discretion,to employ attorneys selected by it to defend any such action,the costs and expenses of , which shall be the responsibility of the Claim Administrator. It is further agreed that each party(provided no conflicts of ' interest exist)shall fully cooperate with the other party in the defense of any action arising out of matters related to the Plan 'i or this Agreement. I 4.4 Claim overpayments. The Employer acknowledges that unintentional administrative errors may occur. When the Claim I Administrator becomes aware of a Claim overpayment,the Claim Administrator will make a diligent attempt to recover any such payment. The Claim Administrator,however, will not be required to enter into litigation to obtain a recovery,unless specifically provided for elsewhere in this Agreement,nor will the Claim Administrator be required to reimburse the Plan, except for negligence or intentional acts by the Claim Administrator. 4.5 Required Plan information. The Employer shall furnish on a Timely basis to the Claim Administrator certain information concerning the Plan and Covered Persons as may from time to time be required by the Claim Administrator for the performance of its duties including,but not limited to,the following: a. All documents by which the Plan is established and any amendments or changes to the Plan. b. All data as may be required by the Claim Administrator regarding Covered Persons who are to be covered under this Agreement. It is the Employer's obligation to Timely notify the Claim Administrator of any change in a Covered Person's status under this Agreement.All such notifications by the Employer to the Claim Administrator(including,but not limited to,forms and tapes)must be furnished in a format mutually agreed to by the parties and must include all information reasonably required by the Claim Administrator to effect such changes. 4.6 Plan eligibility errors. Clerical errors in keeping or reporting data relative to coverage under this Agreement will not invalidate coverage that would otherwise be validly in force or continue coverage which would otherwise validly terminate. Such errors will be corrected by the Claim Administrator subject to the terms and conditions of this Agreement and the Claim Administrator's reasonable administrative practices in the administration of the Plan including,but not limited to, those related to Timely notification of a change in a Covered Person's status.The Employer is liable to Claim Administrator for any benefits paid for a terminated Covered Person until the Employer has notified the Claim Administrator of such Covered Person's termination. 4.7 Claim information disclosure. The Claim Administrator will disclose Claim information in accordance with HIPAA privacy regulations and the Business Associate Agreement entered into by the parties. 4.8 Electronic exchange of information. In the event the Employer and the Claim Administrator exchange various data and information electronically,the Employer agrees to transfer on a Timely basis all required data to the Claim Administrator via electronic transmission on the intranet and/or internet or otherwise, in a format mutually agreed to by the parties. Further,the Employer is responsible for maintaining any enrollment applications and change forms completed by Covered Persons and to allow the Claim Administrator reasonable access to this information as needed for administrative purposes. The Employer authorizes the Claim Administrator to submit reports,data and other information to the Employer in the electronic format mutually agreed to by the parties.In the event the Employer is unable or unwilling to transfer data in the electronic format mutually agreed to by the parties,the Claim Administrator is under no obligation to receive or transmit data in any other format. -8-