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Docusign Envelope ID: 921 F7A24-D5CE-4BCC-9F3C-5E7844661266 <br />SOUTH CAROLINA TPA REGULATORY ADDENDUM <br />With respect to the following provisions required by the State of South Carolina, "Administrator" shall <br />mean RIGHTWAY, and "Insurer" shall mean "Client" as that term is defined in the Agreement. <br />Notwithstanding anything in the Agreement to the contrary, Administrator and Insurer agree as follows: <br />1. Applicability. This Addendum is required in order to include the terms mandated by S.C. Code <br />Ann. § 38-51-40. This Addendum applies to the extent Eligible Person(s) reside in the State of South Car- <br />olina, Insurer is an "insurer" as defined in Title 38 of the Code of Laws of South Carolina 1976 Annotated, <br />such requirements are applicable to the services provided by Administrator under the Agreement and such <br />requirements are not already addressed in the Agreement. <br />2. General. In the event of a direct conflict between this Addendum and the Agreement, the applica- <br />ble provisions of this Addendum shall control if required. Absent such direct conflict, the terms and con- <br />ditions of the Agreement shall remain in full force and effect. Capitalized terms not defined in this Adden- <br />dum shall have the same meaning as set forth in the Agreement. This Addendum may be modified from <br />time to time pursuant to the Agreement. <br />3. Written Agreement Necessary. The written Agreement between Administrator and Insurer must <br />be in place before Administrator may act in the capacity of third party administrator to Insurer. The Agree- <br />ment must be retained as part of the official records of both Insurer and Administrator for the duration of <br />the agreement and five years thereafter. S.C. Code Ann. § 38-51-40. <br />4. Advertising. Administrator may use only the advertising pertaining to the business underwritten <br />by Insurer that has been approved by Insurer in advance of its use. S.C. Code Ann. § 38-51-70. <br />5. Notice Required. Administrator shall provide a written notice approved by the Insurer to the <br />Eligible Person(s) advising them of the identity of and relationship among Administrator, the Eligible Per- <br />son, and Insurer. S.C. Code Ann. § 38-51-120. <br />6. Compensation to Administrator. When Administrator adjusts or settles Claims, the compensa- <br />tion to Administrator with regard to these policies may in no way be contingent on Claim experience. This <br />section does not prevent the compensation of Administrator from being based on charges collected or num- <br />ber of Claims paid or processed. S.C. Code Ann. § 38-51-110. <br />7. Claims Payment. All Claims paid by Administrator from funds collected on behalf of Insurer <br />must be paid only on drafts of and as authorized by Insurer. S.C. Code Ann. § 38-51-100. <br />8. Books and Records Required. Administrator shall maintain at its principal office for the duration <br />of the Agreement and five years thereafter adequate books and records of all transactions among Adminis- <br />trator, Insurer, and Eligible Persons. The books and records must be maintained in accordance with prudent <br />standards of insurance record keeping. The director or his designee shall have access to the books and <br />records for the purpose of examination, audit, and inspection, and information from the records must be <br />furnished to the director or his designee on demand. Any trade secrets contained therein, including, but not <br />limited to, the identity and addresses of policyholders and certificate holders, are confidential, except that <br />the director or his designee may use the information in any proceedings instituted against Administrator. <br />Insurer shall retain the right to continuing access to the books and records of Administrator sufficient to <br />161 <br />This document is CONFIDENTIAL AND PROPRIETARY to RIGHTWAY Healthcare, Inc. and may not be reproduced, <br />transmitted, published, or disclosed to others without the prior written authorization of RIGHTWAY Healthcare, Inc. <br />