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Docusign Envelope ID: 921 F7A24-D5CE-4BCC-9F3C-5E7844661266 established and maintained by Administrator in a federally or state -Eligible Person financial institution. The written agreement between Administrator and Insurer shall provide for the Administrator to periodi- cally render an accounting to the payor detailing all transactions performed by Administrator pertaining to the business of the payor, and the written agreement between Insurer and Administrator shall include spec- ifications of this reporting. Kan. Stat. Ann. § 40-3807(a). 7.2 Administrator shall keep copies of all records of any fiduciary account maintained or con- trolled by Administrator, and, upon request of Insurer, shall furnish Insurer with copies of such records pertaining to deposits and withdrawals on behalf of Insurer. If charges so deposited have been collected on behalf of or for more than one payor, or for the payment of Claims associated with more than one policy, the Administrator shall keep records clearly recording the deposits in and withdrawals from the account on behalf of each payor and relating to each policyholder. Kan. Stat. Ann. § 40-3807(b). 7.3 The Administrator shall not pay any Claim by withdrawals from a fiduciary account in which charges are deposited. Withdrawals from a fiduciary account shall be made as provided in the written Agreement between the Administrator and Insurer, and only for the following purposes: (1) Remittance to an insurer entitled thereto; (2) deposit in an account maintained in the name of Insurer; (3) transfer to and deposit in a Claims paying account, with Claims to be paid as provided in subsection (d); (4) payment to a group policyholder for remittance to Insurer entitled thereto; (5) payment to Administrator of its earned commissions, fees or charges; (6) remittance of return premiums to the person or persons entitled thereto; or (7) payment to other service providers as authorized by Insurer. Kan. Stat. Ann. § 40-3807(c). 7.4 All Claims paid by the Administrator from funds collected on behalf of or for Insurer shall be paid only as authorized by Insurer. Payments from an account maintained or controlled by the Admin- istrator may be made for the following purposes including the payment of Claims: (1) Payment of valid Claims; (2) payment of expenses associated with the handling of Claims to the Administrator or to other service providers approved by Insurer; (3) remittance to Insurer, or transfer to a successor administrator as directed by Insurer, for the purpose of paying Claims and associated expenses; and (4) return of funds held as collateral or prepayment, to the person entitled to those funds, upon a determination by Insurer that those funds are no longer necessary to secure or facilitate the payment of Claims and associated expenses. Kan. Stat. Ann. § 40-3807(d). 8. Compensation. Administrator shall not enter into an agreement or understanding with Insurer in which the effect is to make the amount of Administrator's commissions, fees or charges contingent upon savings effected by the adjustment, settlement and payment of losses covered by Insurer's obligations. This provision shall not prohibit Administrator from receiving performance-based compensation for providing auditing services, from providing managed care or related services, or from being compensated for subro- gation expenses. This section shall not prevent the compensation of Administrator from being based on premiums or charges collected or number of Claims paid or processed. Kan. Stat. Ann. § 40-3808(a), (b). 9. Written Notice. Where the services of an Administrator are utilized, the Administrator shall pro- vide a written notice, approved by Insurer, to covered individuals advising them of the identity of and relationship among the Administrator, the policyholder and Insurer. Kan. Stat. Ann. § 40-3809(a). 10. Disclosures. 117 This document is CONFIDENTIAL AND PROPRIETARY to RIGHTWAY Healthcare, Inc. and may not be reproduced, transmitted, published, or disclosed to others without the prior written authorization of RIGHTWAY Healthcare, Inc.