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D. BCBSF may assign this Agreement (including all obligations and liabilities associated with <br />the Agreement) as well as the right to perform under this Agreement (and to receive payment <br />from Employer) to any of its subsidiaries or affiliates without prior consent or notice to <br />Employer. <br />In fulfilling its obligations under this Agreement, BCBSF reserves the right to contract with <br />third parties it deems necessary to administer the Employer's Plan; therefore, Employer hereby <br />authorizes BCBSF to do all things and to perform all acts which are reasonably necessary or <br />appropriate to properly administer and facilitate claims processing with respect to the <br />Employer's Plan and there is no obligation for BCBSF to obtain prior approval from Employer <br />herein as a condition precedent to entering into any such contract. BCBSF shall remain liable <br />for the performance of any and all such subcontracted duties. Employer acknowledges that <br />BCBSF has contracted with a third party (Blue Cross and Blue Shield of South Carolina <br />"BCBSSC") to provide certain services to Employer in connection with the Agreement, and, <br />as BCBSF's Designated Agent, BCBSSC is authorized to receive payment directly from <br />Employer. <br />E. Except where BCBSF or Designated Agent is adjudicated grossly negligent, committed fraud <br />or willful misconduct, it is understood that BCBSF and its Designated Agents have no liability <br />under the Plan and will only pay benefits pursuant to the Plan, as funds are made available by <br />the Employer. <br />F. It is mutually recognized that BCBSF and its Designated Agents, in performing their <br />obligations under this Agreement, are acting only as agents of the Employer in a ministerial <br />capacity and shall not be designated or deemed the administrator or fiduciary with respect to <br />the purposes of ERISA or any other Federal or State law of similar nature. <br />G. This Agreement is made in, governed by, and shall be construed in accordance with the <br />applicable laws of the State of Florida to the extent permitted by ERISA. <br />H. This Agreement, including its Exhibits, may be changed by an amendment thereto signed by <br />officers of the Employer and BCBSF. Notwithstanding the foregoing, the parties agree that <br />future compliance with the requirements of federal or state laws may require an amendment to <br />this Agreement. Accordingly, BCBSF may unilaterally amend this Agreement to comply with <br />such federal or state laws upon notice to Employer. <br />I. During the term of this Agreement and for a period of six (6) months following its termination, <br />Employer, or its designated claims auditing representative (unless BCBSF objects to the <br />auditing representative in writing), shall have the right to examine records of BCBSF or their <br />Designated .Agent relating only to the Plan of Benefits in accordance with the separately <br />executed External Claim Audit Agreement. Audits will be based on a sample not to exceed <br />250 claims per audit. Any examination of individual member's health benefit payment records <br />shall be carried out in a manner specifically designed to protect the confidentiality of the <br />member's medical information in compliance with all federal and state laws governing <br />confidentiality and privacy of health information and as outlined in the separate audit policy <br />that is executed prior to any audit. All audits shall not exceed 18 months (of service dates). <br />Recovery of any amounts identified in the course of an audit shall be subject to the terms of <br />the applicable provider contract(s). An annual audit will be allowed at no charge to Employer. <br />For subsequent audits during 12 months following the audit, Employer shall pay an additional <br />fee determined by BCBSF for any administrative costs and out-of-pocket expenses incurred <br />17 <br />