6.__Audit.__The association must be audited at least every 3 years. A copy of the audit must be provided to the superintendent and to the joint standing committee of the Legislature having jurisdiction over health insurance matters.

§3907.__Selection of plan administrator

1.__Selection of plan administrator.__The board shall select an insurer or 3rd-party administrator, through a competitive bidding process, to administer the plan.__The board shall evaluate bids submitted under this subsection based on criteria established by the board, including:

A.__The insurer's proven ability to handle large group accident and health insurance;

B.__The efficiency of the insurer's claims-paying procedures; and

C.__An estimate of total charges for administering the plan.

2.__Contract with plan administrator.__The plan administrator selected pursuant to subsection 1 serves for a period of 3 years pursuant to a contract with the association.__At least one year prior to the expiration of that 3-year period of service, the board shall invite all insurers, including the current plan administrator, to submit bids to serve as the plan administrator for the succeeding 3-year period.__The board shall select the plan administrator for the succeeding period at least 6 months prior to the ending of the 3-year period.

3.__Duties of plan administrator.__The plan administrator selected pursuant to subsection 1 shall:

A.__Perform all eligibility and administrative claims- payment functions relating to the plan;

B.__Pay a producer's referral fee as established by the board to each producer that refers an applicant to the plan, if the applicant's application is accepted.__The selling or marketing of the plan is not limited to the plan administrator or its producers.__The plan administrator shall pay the referral fees from funds received as premiums for the plan;

C.__Establish a premium billing procedure for collection of premiums from insured persons.__Billings must be made periodically as determined by the board;