R2016-136 BlueCross BlueShield Administration of Group Health Benefit Plan 2017

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3.3 Litigation. Employer shall, to the extent practical, advise Claim Administrator of any legal actions against it or the other party that specifically or directly concern (a)the terms of or administration of the Plan, or(b)the obligations of either party under the Plan and this Agreement. Employer shall undertake the defense of such action and be responsible for the costs of defense; provided, however, that 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 Claim Administrator. It is further agreed that each party (provided no conflicts of interest exist)shall cooperate with the other party's defense of any action arising out of or related to the Services. For purposes of this Section 3.3, Claim Administrator's "cooperation" includes, but is not limited to, providing reasonable levels of documentation and affidavits, when necessary, but only to the extent(i) Employer is entitled to such information under this Agreement, (ii) Employer would be entitled to the information in litigation, including but not limited to information directly relevant to such action, (iii) such information is not otherwise subject to restrictions on disclosures, including but not limited to privilege or contractual restrictions, and(iv)such documentation is within Claim Administrator's possession in the ordinary course of business. Some defense support, such as from an external reviewer, may require an additional fee. 3.4 Claim overpayments. Employer acknowledges that unintentional administrative errors may occur. When Claim Administrator becomes aware of a Claim overpayment, Claim Administrator will attempt to recover any such payment according to Claim Administrator's recovery policies and procedures. 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 Claim Administrator be required to reimburse the Plan, except for gross negligence or intentional acts by Claim Administrator which caused the overpayment. 3.5 Required Plan information. Employer shall furnish on a Timely basis to Claim Administrator certain information concerning the Plan and Covered Persons as may from time to time be required by 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 Claim Administrator regarding Covered Persons who are to be covered under this Agreement. It is Employer's obligation to Timely notify Claim Administrator of any change in a Covered Person's status under this Agreement. All such notifications by Employer to 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 Claim Administrator to effect such changes. It is also Employer's obligation to obtain from Covered Persons any consent(s) necessary for Claim Administrator to use the Covered Persons' contact information, including but not limited to phone numbers used for auto-dialing. Employer is responsible for ensuring that the terms of its health benefit plan are consistent with the terms of this Agreement. 3.6 Grandfathered Health Plans. Employer shall provide Claim Administrator with written notice prior to renewal (and during the plan year, at least 60 days advance written notice)of any changes that would cause any benefit package of its Plan(s) to lose its status as a "grandfathered health plan" under the Affordable Care Act and applicable regulations. Any such changes (or failure to provide timely notice thereof) can result in retroactive and/or prospective changes by Claim Administrator to the terms and conditions of administrative services. In no event shall Claim Administrator be responsible for any legal, tax or other ramifications related to any plan's grandfathered health plan status or any representation regarding any Plan's past, present and future grandfathered status. The grandfathered health plan form ("Form"), if any, shall be incorporated by reference into and become part of this and Agreement, and Employer represents and warrants that such Form is true, complete and accurate. 3.7 Retiree Only Plans, Excepted Benefits and/or Self-Insured Nonfederal Governmental Plans. If Claim Administrator provides Services for any retiree only plans, excepted benefits and/or self-insured nonfederal governmental plans (with an exemption election), then Employer represents and warrants that one or more such plans is not subject to some or all of the provisions of Part A (Individual and Group Market Reforms) of Title XXVII of the Public Health Service Act(and/or related provisions in the Internal Revenue Code and Employee Retirement Income Security Act) (an"exempt plan status"). Any determination that a Plan does not have exempt plan status can result in retroactive and/or prospective changes by Claim Administrator to the terms and conditions of administrative services. In no event shall Claim Administrator be responsible for any HCSC IL Gen ASA Med Non ERISA REG Rev.8.16 4 Proprietary and Confidential Information of Claim Administrator Not for use or disclosure outside Claim Administrator,Employer,their respective affiliated companies and third party representatives,except with written permission of Claim Administrator.