§87-24 Selection of a carrier or third-party administrator for a health benefits, group life insurance, or long-term care benefits plan. Notwithstanding chapter 103D, selection of a carrier or third-party administrator for any benefit plan shall be based on specifications and considerations determined by the board of trustees. In that process, the board of trustees may:

(1) Prepare specifications;

(2) Submit specifications for proposals by interested applicants;

(3) Evaluate proposals;

(4) Give prime consideration to the applicant offering the lowest net cost and high quality of services; and

(5) Negotiate or use other competitive procedures, as the board of trustees deems appropriate in its discretion, to select a carrier or a third-party administrator. [L 1961, c 146, pt of §1; Supp, §5A-14; HRS §87-24; am L 1991, c 331, §6; am L 1995, c 136, §1]