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 or the 3rd-party administrator's proven ability to handle large group accident and health insurance;

B.__The efficiency of the insurer's or the 3rd-party administrator's claims-payment 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 is contracted for a period of 3 years.__At least one year prior to the expiration of each 3-year period of service by a plan administrator, 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 selection of the plan administrator for the succeeding period must be made at least 6 months prior to the expiration 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 who 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