2.__Contract with plan administrator.__The plan administrator selected pursuant to subsection 1 serves for a period of 3 years pursuant to a contract with the association.__At least one year prior to the expiration of that 3-year period of service, the board shall invite all insurers, including the current plan administrator, to submit bids to serve as the plan administrator for the succeeding 3-year period.__The board shall select the plan administrator for the succeeding period at least 6 months prior to the end of the 3-year period.

3.__Duties of plan administrator.__The plan administrator selected pursuant to subsection 1 shall:

A.__Perform all eligibility and administrative claims- payment functions relating to the plan;

B.__Pay a producer's referral fee as established by the board to each producer that refers an applicant to the plan, if the applicant's application is accepted.__The selling or marketing of the plan is not limited to the plan administrator or its producers.__The plan administrator shall pay the referral fees from funds received as premiums for the plan;

C.__Establish a premium billing procedure for collection of premiums from insured persons.__Billings must be made periodically as determined by the board;

D.__Perform all necessary functions to ensure timely payment of benefits to covered persons under the plan, including:

(1)__Making available information relating to the proper manner of submitting a claim for benefits under the plan and distributing forms upon which submissions must be made;

(2)__Evaluating the eligibility of each claim for payment under the plan; and

(3)__Notifying each claimant within 45 days after receiving a properly completed and executed proof of loss as to whether the claim is accepted, rejected or subject to compromise.__The board shall establish reasonable reimbursement amounts for any services covered under the plan;