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1997-04 8 8 CLAIMS ADMINISTRATION CONTRACT BY AND BETWEEN CITY OF CLERMONT ("The "Employer") and PCA SOLUTIONS, INC. (the "Claims Administrator") .<i(\ I 8 8 CLAIMS ADMINISTRATION CONTRACT TABLE OF CONTENTS Page BACKGROUND INFORMATION. ...... .................................."............. "".0.........' ARTICLE I 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 1 DEFINITIONS.oo...................o.....................""""""""""0"""'0"""" 1 Administrative Fee.............................................o............................,. 1 Agreement.......o......................................"""""""""""""""""0"""" 1 Benefit..............o..................................""'.......0"""""""""""""""'" 2 Claims Administrator.....................................o....0""""""""'0""""'" 2 COBRA Participant........... ............................. 0"""'" """""""""""'" 2 Code.....................................o............""""0""""""""""0"'0""""""" 2 Employer.....o........................................"""""""""""""""0""""""" 2 Contract of Insurance............. """"""""'...0.......................... 0""""'" 2 Dependent......................................o...............0.."""""""""""""""" 2 Eligible Employee. """""""""""""""""""""""'" ......0......... 0......... 2 Employee.........o....................o..o.o.o..o...o.""""""""""""........0..........' 2 Plan............................................o......"""""""""""""""........0....."" 2 Plan Administrator....................................o......,................................ 2 ARTICLE II EMPLOYMENT OF CLAIMS ADMINISTRATOR....................... 2 2.1 Employment....................................................................................,. 2 ARTICLE III DUTIES AND RESPONSIBILITIES OF THE CLAIMS ADMINISTRATOR..................o......o..............o................................ 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3 Genera1............................................................................................,. 3 Reinsurance, Excess Coverage and Ancillary Plan Services............ 3 Claims Services.... ...... ..................... .................... ............................,. 3 Plan Presentation.............................................................................,. 5 Underwriting Services......... ............................."...................... 0"""" 5 General Administration..........o.....................o.................................... 5 Abide by Rules, Regulations, Policies and Procedures..................... 7 Maintenance of Existence and Qualification..................................... 7 Claims Administrator Insurance....... ................................................. 7 Matters Not the Responsibility of Claims Administrator.................. 7 Claims Administrator Not Plan Fiduciary......................................... 8 -11- 8 8 ARTICLE IV DUTIES AND RESPONSIBILITIES OF THE EMPLOYER............ 8 4.1 4.2 4.3 Rules, Regulations, Policies and Procedures..................................... 8 Administrative Fees ..................... ............"........... ..... ................. 8 Other Expenses..o...................o..........o............"""""""""""""""'0"" 8 ARTICLE V OWNERSHIP OF BOOKS, RECORDS AND FILES...................... 8 5.1 5.2 Genera1..................................................0..0""""""""""""""""""0."" 8 Disposition on Termination............................... 0"""""""""""""""" 9 ARTICLE VI CERTAIN PROHIBITED SERVICE EMPLOYER ACTIVITIES 6.1 6.2 6.3 9 Disclosure ofInformationo.................................o............................,... 9 Impairment of the Plan ........... """""""""""""'0"""""""""""'" ...... 9 Limitations on Prohibitions....o....................................."'........0......."" 9 ARTICLE VII RELIANCE AND POLICY CHANGES........................................... 9 7.1 7.2 Reliance by Claims Administrator...................................................... 9 Policy Changes...... ......... ........... ......................................... .......... ...,... 10 ARTICLE VIII TERM OF AGREEMENT AND TERMINATION........................ 10 8.1 8.2 General.............o..............................................0"""""""""..0......0.0."'" 10 Termination for Cause............o........................................................0.... 10 ARTICLE IX INDEMNIFICA TION.......................................................................... 10 9.1 9.2 Indemnification of Claims Administrator............................................. 10 Indemnification by Claims Administrator............................................ 11 ARTICLE X MISCELLANEOUS.. """"""""""""""""" ............................. 0 0"'" ..... 11 10.1 10.2 10.3 10.4 10.5 10.6 10.7 10.8 10.9 Entire Agreement.... ........... .............. ...............0..""""""""""""""""", 11 Notices..............................................."'0""""""""""""""""""""""'" 11 Plan Document.................................................0....................................12 Governing Law.... ....................................."...... ..............................".... 12 Successor Statutes.................... ..... ..........."............................... ............ 12 Litigation...............................................................................................12 Counterparts..........................o............................0..................................12 Parties in Interest............................................................................,.... 12 Rules of Construction............ 0 .............................................................. 12 -111- 8 8 CLAIMS ADMINISTRATION CONTRACT This Claims Administration Contract (the "Agreement") is made effective January 1, 1997 by and between the City of Clermont, a Florida political subdivision (the "Employer") and PCA Solutions, Inc., a Florida corporation (the "Claims Administrator"). BACKGROUND INFORMATION The Employer has heretofore elected to provide group health coverage (the "Plan") by self-funding a portion of the cost of the group health coverage and by securing excess health insurance coverage for the balance of the cost of the Plan. The Employer is authorized to appoint a Claims Administrator from time to time as the Employer deems necessary for the proper administration of the Plan. The Claims Administrator is a corporation that has the experience and qualifications in the self-funded health benefit field that are necessary to provide claims administration services to the Plan. It is the desire of the Employer to hire and employ the Claims Administrator on behalf of the Plan to provide the specific services that are necessary or appropriate in the planning, operation and conduct of the day-to-day business of the Plan. AGREEMENT The Employer and Claims Administrator acknowledge the accuracy of the foregoing Background Information and agree as follows: ARTICLE I. DEFINITIONS As used in this Agreement, the following capitalized terms shall have the following meanIngs: 1.1 '~dministrative Fee" means the dollar amount per Eligible Employee per month set forth in Exhibit "A" hereto that is used to compute the ordinary fees payable by the Employer to the Claims Administrator for providing to the plan the services specified in this Agreement. Such fees are to be calculated by multiplying the Administrative Fee by the number of Eligible Employees for the current calendar month (as that term is modified in Exhibit "A"). 1.2 "Agreement" means this instrument or agreement, including all amendments or restatements hereto. 1 8 8 1.3 "Benefit" means any and all health benefits provided to Eligible Employees, COBRA Participants and Dependents pursuant to the terms of the Plan and payable from the assets of the Employer or from any Contract of Insurance purchased by the Employer. 1.4 "Claims Administrator" means PCA Solutions, Inc., a Florida corporation, or any successor corporation or entity. 1.5 "COBRA Participant" means any former Eligible Employee or Dependent of a former Eligible Employee, that was eligible for, and elected health care continuation coverage under applicable provisions of the Consolidated Omnibus Budget Reconciliation Act, as amended or replaced. 1.6 "Code" means the Internal Revenue Code of 1986, as amended or replaced. 1.7 "Contract of Insurance" means any health insurance policy, whether group or individual, and including reinsurance or excess health insurance coverage, issued by an insurer as selected by the Plan Administrator or Employer. 1.8 "Dependent" means an Eligible Employee's spouse, child under the age 25 or as otherwise defined in the Summary Plan Document. 1.9 "Eligible Emplovee" means an Employee who works 25 hours a week for the Employer and has satisfied the Employer's employment waiting period which is defined in the Summary Plan Description and Plan Document for the Health Benefit Plan. 1.10 "Emvlovee" means any person who is employed by the Employer, but excludes any person who is employed as a leased employee or independent contractor. 1.11 "Emplover" means the City of Clermont, a Florida political subdivision. 1.12 "Plan" means the Health Benefit Plan of the Employer and/or Affiliated Employer as evidenced by the Summary Plan Description and Plan Document adopted by the Employer for the purpose of outlining the Benefits to be provided to Eligible Employees, COBRA Participants and Dependents by the Plan. 1.13 "Plan Administrator" means the Employer, unless a person or committee of persons is designated by the Employer to administer the Plan on behalf of the Employer. In no event shall the Claims Administrator be the Plan Administrator for purposes of this Agreement. ARTICLE II. EMPLOYMENT OF CLAIMS ADMINISTRATOR 2.1 Emplovment. The Employer hereby employs the Claims Administrator on behalf of the Plan to perform the services outlined in this Agreement, and the Claims Administrator 2 8 8 hereby accepts such employment, all on the terms and conditions and for the duration provided in this Agreement. ARTICLE III. DUTIES AND RESPONSIBILITIES OF THE CLAIMS ADMINISTRATOR 3.1 General. During the term of this Agreement, the Claims Administrator shall provide the administrative services specified herein relative to the day-to-day administration of the Plan. Such administrative services shall consist of: (a) assisting the Plan Administrator in procuring one or more Contracts of Insurance for the benefit of the Plan for reinsurance and/or excess health insurance coverage as set forth in Section 3.2; (b) providing claims services as set forth in Section 3.3; (c) providing services relative to plan presentation as set forth in Section 3.4; (d) providing underwriting services as set forth in Section 3.5; (e) providing general administrative services as set forth in Section 3.6; (f) abiding by the policies and procedures as set forth in Section 3.7; (g) maintaining the Claims Administrator's existence and qualification as set forth in Section 3.8; and (h) maintaining certain insurance as set forth in Section 3.9. 3.2 Reinsurance. Excess Coverage and Ancillary Plan Services. (a) The Claims Administrator shall assist the Plan Administrator in securing, placing and procuring, at the expense of and on behalf of the Plan and the Employer, one or more Contracts of Insurance for reinsurance and/or excess health insurance coverage written by an insurer or insurers authorized or approved to transact insurance business in the State of Florida in amounts sufficient to satisfy the requirements of the Plan. (b) At the request of the Plan Administrator, and at reasonable times consistent with the Plan's contractual obligations, the Claims Administrator shall use its best efforts to assist the Plan Administrator in renegotiating the reinsurance and/or excess health insurance coverage described above. (d) Nothing in this Agreement shall be construed as prohibiting the Claims Administrator from receiving from the insurer or insurers writing such reinsurance or excess health insurance policies, ordinary and reasonable commissions (including profit commissions, if applicable) as compensation for the special services provided by the Claims Administrator in procuring such reinsurance and/or excess health insurance policies. The Claims Administrator shall disclose the amount (or computation of such amounts) of such commissions in a disclosure notice. 3.3 Claims Services. The Claims Administrator shall provide the Plan with the claims administration services necessary for the day-to-day administration of the Plan. Such claims administration services shall consist of: (a) Handling claims for Benefits where a liability is asserted which is claimed to be covered by the Plan; 3 8 8 (b) Coordinating with the Plan Administrator in the administration and processing of the claims for Benefits, including without limitation, certifying such claims for Benefits to the Plan Administrator for payment; (c) Providing claims forms to the Plan Administrator; (d) Assisting Eligible Employees, COBRA Participants, and the Plan Administrator in completing the Benefits claim forms. (e) Coordinating with and responding to the reasonable requests of legal counsel employed by the Plan Administrator to defend liability suits against or on behalf of the Plan; (f) Processing and certifying to the Employer and Plan Administrator for payment, claims for Benefits pursuant to the Plan provisions and the claims procedures established in the Plan; (g) Furnishing to each Eligible Employee, COBRA Participant and Dependent, paid Benefits under the Plan, an explanation of the Benefits paid on his behalf; (h) Verifying the eligibility of Eligible Employees, COBRA Participants and Dependents for coverage under the terms of the Plan; (i) Providing verification of Benefits to medical care providers; G) Maintaining such accounts for the payment of claims as the Plan Administrator shall direct in writing; (k) Initiating such special investigations of claims for Benefits believed to be questionable or improper as the Claims Administrator may be directed to initiate by the Plan Administrator, it being agreed that charges of third party investigators for such special investigations shall be borne by the Employer; (1) Routinely, and as directed by the Plan Administrator, investigate claims for Benefits; (m) To the extent necessary, coordinating life, accidental death and dismemberment claims with the insurers providing such coverages; and (n) Maintaining continuing claims records for the Plan Administrator. The claims services to be provided by the Claims Administrator under this Agreement shall be (i) in accordance with the provisions of the Plan, (ii) in accordance with such reasonable rules, regulations and policies as are adopted by the Plan Administrator and (iii) in accordance with the provisions of the Code, and (iv) in accordance with any requirements of any excess health insurance policies or reinsurance policies issued to the Piano 4 8 8 3.4 Plan Presentation. The Claims Administrator agrees to: (a) Provide such information and materials (including the summary plan description) as are reasonably necessary to adequately describe and present the Benefits offered by the Plan to Eligible Employees and COBRA Participants. Notwithstanding the foregoing, it is understood that all such information and materials must be approved in writing by the Plan Administrator and that such reasonable cost of such printing is included in the initial plan start up fee; and (b) Assist the Plan Administrator in the enrollment of Eligible Employees and Dependents, and communicating their rights to health care continuation coverage to eligible COBRA Participants; it being expressly acknowledged and agreed that the Plan Administrator (not the Claims Administrator) shall be responsible for all notices under the health care continuation provisions of the Consolidated Omnibus Budget Reconciliation Act (COBRA). 3.5 Underwriting Services. The Claims Administrator shall provide underwriting services for the Plan for the purpose of selecting and pricing risks to be covered by the Plan and establishing charges for risks covered by the Piano In providing such underwriting services, the Claims Administrator shall comply with such reasonable underwriting and rating standards as the Plan Administrator may adopt from time to time. Nothing in this Section 3.5 shall be construed to obligate the Claims Administrator to provide actuarial services to the Plan. 3.6 General Administration. The Claims Administrator agrees to: (a) Attend meetings of the Plan Administrator as reasonably directed by the Plan Administrator from time to time; (b) As directed by the Plan Administrator, make such reports to the Plan Administrator relating to matters of concern or general interest with respect to the Plan as are reasonably requested by the Plan Administrator; (c) As directed by the Plan Administrator, and with the assistance of the Plan Administrator's actuaries, advise and assist the Plan Administrator in the development of rates, rate modifications, Benefit modifications, cost modifications, and the implementation of any such modifications; (d) As directed by the Plan Administrator and without thereby undertaking to perform the duties of the Plan's actuaries, assist the Plan's independent actuaries by providing the actuaries such information from the Plan's records as may be necessary to permit the Plan's actuaries to calculate the financial effect on the Plan of the modifications referenced in subsection (c) above; (e) If requested by the Plan Administrator, endeavor to provide the Plan Administrator with sufficient pertinent information to enable the Plan Administrator to evaluate 5 8 8 the Plan and the Plan's eligibility requirements and, if deemed advisable by the Plan Administrator, to make changes in such eligibility requirements; (f) Provide a toll free telephone number for use by the Employer, the Plan Administrator, Eligible Employees, COBRA Participants and Dependents desiring to contact the Claims Administrator; (g) Provide postage for routine correspondence relating to the Plan; (h) Provide all required notices to the Plan's reinsurer(s) and excess health insurance carrier(s), including notice of any modification of the Plan; (i) Coordinate with the Plan Administrator in carrying out the policies of the Plan Administrator and providing day-to-day management for the Plan; G) At the direction of the Plan Administrator, provide to the certified public accountants selected by the Plan Administrator, such reports and information as may reasonably be necessary to enable such certified public accountants to prepare the Plan's audited financial statements and to express their professional opinion as to the financial condition of the Plan; (k) Upon request of the Plan Administrator, represent the Employer at hearings, meetings, and administrative inquiries involving the financial interests of the Plan, and before the Internal Revenue Service, Department of Labor and any regulatory agency or department of the State of Florida; provided, however, that the Claims Administrator shall not represent the Employer where representation by an attorney at law is required; (1) As directed by the Plan Administrator, provide to the actuaries employed by the Employer such reports and information as may reasonably be necessary for such actuaries to express their professional opinion as to the financial status of the Plan; (m) Provide information to assist Plan Administrator in the completion of Schedule A - 5500 form; (n) To the extent applicable to matters handled by the Claims Administrator on behalf of the Plan, prepare and distribute Internal Revenue Service Form 1099 to medical service providers; (0) Provide to the Plan Administrator within twenty (20) days of the end of each calendar month, as agreed upon by the Plan Administrator and the Claims Administrator a monthly report relative to all Benefits paid under the Plan; and (P) Maintain current name and address listings (compiled from the Employer's and Affiliated Employer's records) of all Eligible Employees, COBRA Participants, Dependents, and Retirees. 6 8 8 3.7 Abide bv Rules. Regulations. Policies and Procedures. In the performance of its duties under this Agreement, the Claims Administrator shall, subject to Article VII of this Agreement, conduct itself in a manner consistent with the reasonable policies, procedures, rules and regulations heretofore or hereafter established by the Plan Administrator. 3.8 Maintenance of Existence and Qualification. The Claims Administrator shall be, as of the date of this Agreement, and throughout the term of this Agreement: (a) duly authorized to transact business in the State of Florida; and (b) to the extent required by state law, duly authorized and approved by the State of Florida to contract with self-insurance health benefit plans as a service company. 3.9 Claims Administrator Insurance. The Claims Administrator shall procure and maintain, at its own expense, any fidelity bond and errors and omissions coverage required by the laws of the State. 3010 Matters Not Responsibility of Claims Administrator. The Claims Administrator undertakes in this Agreement to perform only such duties as are specifically set forth in this Agreement. Without limiting the generality of the foregoing, it is specifically agreed that the Claims Administrator shall not be expected to perform for the Employer any of the following duties: (a) Any duties that require the services of a licensed attorney at law; (b) Any duties that are the responsibility of the Employer's certified public accountants; (c) Any duties (including, but not limited to, investment of the monies of the Employer) that would be appropriate duties of a fiscal agent; (d) Any duties that are the responsibility of the Employer's actuaries; (e) Any duties relative to utilization management or utilization review, it being specifically contemplated that the Employer will contract with a third party to perform such duties if the Employer desires to have such duties performed; (f) Any duties relative to exercising ultimate responsibility for the management of the Plan, it being specifically agreed that such responsibility and duties rest with the Plan Administrator; (g) Any duties of an insurer, reinsurer or excess insurer, it being specifically acknowledged that the Claims Administrator does not insure or underwrite the liability of the Employer under the Plan. In no event or circumstance shall this Agreement be construed to be either an insurance policy or a contract to insure. 7 8 8 3.11 Claims Administrator Not Plan Fiduciary. Nothing in this Agreement shall be construed as an undertaking by the Claims Administrator to serve as a plan "fiduciary" unless such status shall be automatically conferred on the Claims Administrator by operation of law. ARTICLE IV. DUTIES AND RESPONSIBILITIES OF THE EMPLOYER 4.1 Rules. Regulations. Policies and Procedures. The Plan Administrator shall have the right (subject to Section 7.2 of this Agreement) to adopt (or revise) rules, regulations, policies and procedures for the guidance of the Claims Administrator in performing its duties under this Agreement. In the absence of rules, regulations, policies or procedures established by the Plan Administrator, the Claims Administrator shall be entitled to use and rely upon its normal operating procedures or its best judgment in performing its duties in respect of the services provided hereunder to the Plan, subject, however, to any specific advise or directions received from the Plan Administrator in particular cases. 4.2 Administrative Fees. All Administrative Fees and other expenses (as defined in Section 4.3) provided for herein shall be paid by the Employer. Such Administrative Fees and other expenses shall be payable to the Claims Administrator in monthly installments, each such installment to be (a) payable on or before the tenth day of each calendar month and (b) equal to the Administrative Fee times the number of Eligible Employees calculated for the current calendar month 4.3 Other EXDenses. The Employer and Affiliated Employers shall be jointly and severally liable for all other expenses of operating the Plan, except for expenses directly relating to the performance by the Claims Administrator of its obligations under this Agreement. The other expenses to be paid by the Employer (unless paid by the Employer and/or Affiliated Employers) shall include, but not be limited to, (i) excess health insurance and/or reinsurance premiums, (ii) taxes and assessments, if any, imposed by law, (iii) any fees or other sums payable to persons providing utilization management or utilization review services to the Employer (iv) claims or losses, (v) certified public accountant and audit expenses, (vi) actuarial expenses, (vii) legal expense, (viii) fidelity and surety bond, and errors and omissions coverage premiums for coverages insuring the Employer. ARTICLE V. OWNERSHIP OF BOOKS. RECORDS AND FILES 5.1 General. The Claims Administrator shall maintain and retain on behalf of the Plan Administrator custody of the books, records and files of the Plan for the duration of this Agreement. Such books, records, and files of the Plan shall remain the exclusive property of the Employer but it is specifically acknowledged and agreed that software programs, computer programs, source codes and other computer software items that are utilized by the Claims Administrator are not the property of the Employer. All books, records and files of the Plan in 8 8 8 the possession of the Claims Administrator shall be open for inspection by the Plan Administrator or Trustee during regular business hours. 5.2 Disposition on Termination. If this Agreement expires or is terminated as provided in Article VIII hereof, then upon payment of all Administrative Fees and other expenses (as provided in Article IV) all applicable books, records and/or files of the Plan in the possession of the Claims Administrator shall promptly be released or delivered to the Plan Administrator (or to the Employer's designated successor service Employer) at the Plan Administrator's expense. Notwithstanding the foregoing, the Claims Administrator shall be entitled to retain a copy of all applicable books, records and files of the Plan and the Trust (including, without limitation, computer tapes or records of such items) for a period of two years from the date of termination; at the end of such two year period, the copy of such books, records and files ofthe Plan and Trust so retained by the Claims Administrator shall either be returned to the Plan Administrator or shall be destroyed by the Claims Administrator. ARTICLE VI. CERTAIN PROHIBITED SERVICE EMPLOYER ACTIVITIES 6.1 Disclosure of Information. During the term of this Agreement, the Claims Administrator shall not, except with the consent of the Employer and/or Affiliated Employer or in connection with the performance of its duties under this Agreement, (a) disclose to any person the names of the Employer and Affiliated Employers, or (b) utilize any proprietary information concerning the Plan to the detriment of the Plan. 6.2 Impairment Qj the Plan. The Claims Administrator shall not engage in any activity intentionally designed to impair the Plan. 6.3 Limitations on Prohibitions. It is acknowledged and agreed by the Employer that (a) the Claims Administrator serves and intends to serve as a service Employer for other health benefit plans, (b) many of the policies and procedures to be recommended to or utilized by the Plan Administrator have been developed by the Claims Administrator and have general applicability to many health benefit plans, and ( c) such information having common applicability to many health benefit plans, whether or not developed by the Claims Administrator, shall not be deemed to be proprietary information of the Employer. ARTICLE VII. RELIANCE AND POLICY CHANGES 7.1 Reliance bv Claims Administrator. In the absence of specific written instructions from the Plan Administrator in any particular case, the Claims Administrator shall be fully protected in acting or refraining from acting in accordance with the established rules, regulations, policies or procedures of the Plan Administrator. The Claims Administrator also shall be fully protected in acting or refraining from acting in particular cases in accordance with any specific 9 8 8 written instructions from the Plan Administrator, even though such instructions shall be contrary to or inconsistent with the established rules, regulations, policies or procedures of the Plan Administrator. 7.2 Policv Changes. It is recognized by the parties that it may be necessary or desirable for the Plan Administrator to supplement or amend its rules, regulations, policies and procedures (including those contemplated by Article IV hereof) from time to time, and that the Plan Administrator shall have the power to adopt new or supplemental rules, regulations, policies and procedures and to make changes in the existing rules, regulations, policies and procedures. Notwithstanding the foregoing, no new or supplemental rules, regulations, policies or procedures shall be adopted and no change in the existing rules, regulations, policies or procedures of the Plan shall be made (other than such new or supplemental rules, regulations, policies or procedures or such changes to existing rules, regulations, policies and procedures as may be required by law) without the express written consent of the Claims Administrator if the effect of such new or supplemental rules, regulations, policies or procedures or the change in the existing rules, regulations, policies or procedures is (a) to increase substantially the duties or obligations of the Claims Administrator, or (b) to otherwise materially and adversely affect the Claims Administrator. ARTICLE VIII. TERM OF AGREEMENT AND TERMINATION 8.1 General. This Agreement shall become effective January 1, 1997 and shall remain in full force and effect until the first anniversary hereof. On the first anniversary of this Agreement and on each anniversary thereafter this Agreement shall be automatically renewed on the terms and conditions herein set forth for a successive one year period unless at least ten (10) days prior to the renewal date either party shall provide the other party with written notice terminating this Agreement as of the renewal date. Notwithstanding, the parties may agree at the end of the term of this agreement and/or upon nonrenewal, to continue this agreement for claims run-out services; such claims run-out services are not included in the services provided under this agreement and the Claims Administrator shall notify the Employer of the fees payable for run- out services 8.2 Termination for Cause. Either party may terminate this Agreement for cause by giving written notice thereof to the other party. Such notice shall specify the cause, shall state the termination date and shall be sent by certified mail, return receipt requested to the other party at the notice address specified in Section 10.2 of this Agreement. The termination date shall not be less than thirty (30) days from the date of mailing the termination notice. ARTICLE IX. INDEMNIFICATION 9.1 Indemnification of Claims Administrator. The Employer and Affiliated Employers (to the extent permitted by law) agree to indemnify and hold the Claims Administrator harmless from and against all costs, damages, judgments, attorneys' fees, 10 8 8 expenses, and obligations which the Claims Administrator may incur or sustain in connection with or arising from this Agreement or any court action arising hereunder, provided such action is not determined to have resulted primarily from a breach of this Agreement by the Claims Administrator. Without limiting the foregoing indemnification, the Employer, (to the extent permitted by law) agrees to indemnify and hold the Claims Administrator harmless from and against all costs and liabilities which the Claims Administrator may incur or sustain as a result of disclosing any medical information or Benefit claims information to the Employer, Affiliated Employers, or the Plan Administrator. 9.2 Indemnification bv Claims Administrator. The Claims Administrator agrees to indemnify and hold the Employer, Affiliated Employers and the Plan Administrator harmless from and against all costs and liabilities which occur as a result of a breach of this Agreement by the Claims Administrator or from any act, error, omission, or commission which is performed outside the expressed rules, regulations and policies ofthe Plan or the Plan Administrator. ARTICLE X. MISCELLANEOUS 10.1 Entire Agreement. This Agreement contains all of the terms agreed upon between the parties with respect to the subject matter hereof. No amendment or modification of this Agreement shall be valid or binding on either party hereto unless made in writing and fully executed by both parties. 10.2 Notices. All notices provided for herein or contemplated hereby shall be in writing and shall be deemed to have been duly given when sent postage prepaid by certified mail return receipt requested, to the parties at the following addresses: To Claims Administrator: PCA Solutions, Inc. P. O. Box 166007 Altamonte Springs, FL 32716 Attn.: Nancy Blastic, Corporate Counsel To Employer: City of Clermont 1 Westgate Plaza Clermont, Florida 34711 Attn.: Joseph Van Zile To Plan Administrator: City of Clermont 1 Westgate Plaza Clermont, Florida 34711 Attn.: Joseph Van Zile 11 8 8 Any person may change such notice address for all purposes by providing notice as aforesaid to the other parties specifying the new notice address. 10.3 Plan Document. In the event of a conflict in the definitions as used in this Agreement and between the Summary Plan Description and Plan Document, the Summary Plan Description and Plan Document shall prevail. lOA Governing Law. This Agreement shall be construed and enforced in accordance with the laws of the State of Florida, without regard to principles of conflicts of laws, and all provisions hereof shall be administered according to the laws of that state. In case any provision of this Agreement shall be or become invalid, such fact shall not affect the validity of any other provlSlon. 10.5 Successor Statutes. Any and all references in this Agreement to any provision of the Code or Act, or any statute, regulation, exemption or other law shall be deemed to refer also to any successor provision, statute, regulation, exemption or other law. 10.6 Litigation. In the event of litigation arising from or relating to this Agreement, the prevailing party shall be entitled to recover from the non-prevailing party its costs, including without limitation, reasonable attorneys' fees, at trial and on appeal. Any dispute arising under this Agreement shall be litigated in trial courts located in Seminole County, any objection as to jurisdiction or venue in such courts being hereby waived. 10.7 Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which constitute one and the same Agreement. 10.8 Parties in Interest. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their successors. Neither party shall be entitled to assign its rights or obligations under this Agreement to any other party; provided, however, that nothing in this Section 10.8 shall be construed: (a) to prohibit the Claims Administrator from granting any lender a security interest in any receivables of the Claims Administrator due pursuant to this Agreement, (b) to prohibit the Claims Administrator from delegating its duties under this Agreement to such persons or entities satisfactory to the Plan Administrator, as the Claims Administrator may properly deem necessary to the efficient performance of its responsibilities under this Agreement, or (c) to prohibit the Claims Administrator from assigning this agreement to any corporate affiliate of the Claims Administrator as long as such assignment does not relieve the Claims Administrator of ultimate responsibility for performance of the Claims Administrator's obligations hereunder. 10.9 Rules of Construction. In construing the terms of this Agreement, it is agreed by the parties hereto that: (a) All Article and Section headings are for convenience of reference only and shall be disregarded; 12 8 8 (b) All references herein to any gender shall be deemed to include every other gender; (c) The singular includes the plural and the plural includes the singular; and (d) All accounting terms used herein shall be construed in accordance with generally accepted accounting principles. IN WITNESS WHEREOF, the parties hereto have executed this Claims Administrator Contract this I r¡~ day of T OJ) (LtLÎ <-( 199 1-. "CLAIMS ADMINISTRATOR" "EMPLOYER" PCA Solutions, Inc. Ci@_~ By' ¿J/ ~ Title JIJ1 \J 0 r By: D.~O\~ Title: (Corporate Seal) 13 8 8 EXHIBIT" A" APPLICABLE RATE FOR CALCULATION OF ADMINISTRATIVE FEES The Rate that shall be used to compute the Administrative Fees of PCA Solutions, Inc. under the Claims Administrator Contract (the "Agreement") by and between the City of Clermont and PCA Solutions, Inc. shall be $12.00 per Eligible Employee and Eligible Employee with dependent coverage per month. 14