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penalties will be credited to future amounts invoiced by the TPA to IRC. The Performance Reviews will measure objective performance standards which are easily identified and measured. After each Performance Review is performed,the TPA will meet with the IRC Risk Manager and/or designee to discuss initial evaluation results. The TPA will be given an opportunity to factually rebut the initial findings. Thereafter, a final tally of the review results will be prepared. A minimum Total Weighted Review Points of 80 is expected in the first annual period of the contract. The minimum Total Weighted Review Points is raised to 90 on the second annual period, and 95 for periods thereafter. Failure to meet these average compliance expectations will result in the penalty noted above. THIRD PARTY LIABILITY CLAIM FILE REVIEWS The Claim File Review will include 20 randomly selected claim files. The make-up of the files selected for each review will be at least 50%open files. At least 50%of the selected files will have recent(within performance period)dates of occurrence and remaining selected files will have dates of injury more than 12 months prior to the performance period. Each claim will generate a score ranging from 1 to 100 points. All timeliness standards of performance are stated in business, not calendar, days. In any instances where a standard is not applicable to a particular claim file,the file will be awarded the appropriate point(s)for that standard. Only transactions that are paid or processed during the performance period will be subject to scoring. 1. Claim Receipt, Recording & Contact Assigned (20 Points) The TPA will document claims intake information on all liability claims,enter the claim into the system,properly code claim,assign claim number and assign adjuster. This information will be available electronically within one business day of receipt of claim intake information. A minimum of"three attempts"by the claims adjuster to contact the appropriate claimant(s), employees,and/or supervisor will be considered a"contact,"if followed up with appropriate correspondence and documented in the file within the measurement period. 2. Document Subrogation Recovery Potential (10 Points) Adjusters will document subrogation,contribution,and/or coordination of benefits recovery potential in the claim file within fourteen (14) days of claim receipt. 3. Litigation Management and Communication/Documentation (10 Points) Claims adjusters will "address"litigation within two(2)days of litigation receipt. This will Page 23