Employer has asked isolved Benefit Services to assist it with its administrative obligations under one or more benefit plans (“the Plan”) for which an electronic payment card (the “Card”) is available. isolved Benefit Services has contracted with one or more third parties to make the “Card” available to Employer for use by Plan participants for the purpose of facilitating direct payment of eligible expenses under the Plan.
This Additional Service Agreement describes the rights and responsibilities of isolved Benefit Services and Employer with respect to use of the Card made available by isolved Benefit Services. The rights and obligations outlined below apply only to the extent this service is chosen by Employer in the Service Agreement. This Additional Service Agreement is incorporated into and made a part of the Service Agreement (including the General Terms and Conditions). The effective date of this Additional Service Agreement is the effective date of the Service Agreement or, if later, the Service Date related to the services hereunder. The responsibilities of the Parties set forth in this Additional Service Agreement are in addition to any responsibilities set forth in the Service Agreement (including the General Terms and Conditions). If there is a conflict between this Additional Service Agreement and the Service Agreement (including the General Terms and Conditions), the Service Agreement (including the General Terms and Conditions) controls.
A. Responsibilities of isolved Benefit Services
- isolved Benefit Services will make the Card available to Employer and Plan participants at all times during the course of the Service Agreement except as otherwise set forth herein. Use of the Card will be subject to the terms of the Service Agreement, and any cardholder agreement delivered with the Card.
- isolved Benefit Services may engage the services of one or more third parties (“Third Party Service Provider”) in order to comply with its obligation to provide the Card during the term of the Service Agreement. isolved Benefit Services agrees to ensure that any third party with whom isolved Benefit Services contracts to provide such services agrees to protect individually identifiable health information in the same manner that isolved Benefit Services has as set forth in the Business Associate Agreement.
- isolved Benefit Services will provide administrative services to Employer and participants related to use of the Card, including activating and deactivating Cards, responding to participant inquiries and providing appropriate notices regarding Participant accounts and actions taken in relation thereto (in the same manner set forth in the Fringe Benefit Plan Administration Additional Service Agreement).
- isolved Benefit Services agrees to reasonably ensure compliance with proper use of the Card and take whatever action is necessary to investigate and resolve errors in Card transactions asserted by participants within ten (10) business days of receipt of notice. isolved Benefit Services will promptly cancel any Card reported to isolved Benefit Services as lost or stolen. However, isolved Benefit Services is not responsible for costs and/or damages associated with lost or stolen Cards that are not properly reported as such by the Plan participant.
- isolved Benefit Services or Third Party Service Provider will make available a noninterest bearing account into which isolved Benefit Services will withdraw via electronic funds transfer (ACH) funds from the employer named account as set forth below in B.4.
- isolved Benefit Services agrees to comply with applicable laws regarding handling and privacy of account and transaction information and to operate the Card program in accordance with published IRS guidance applicable to Card processing of eligible expenses. In accordance with the applicable guidance, the Card will be limited to certain merchants and merchant category codes. The purchase of items under a qualifying merchant category code does not necessarily indicate that the expense is an eligible expense (as defined in the Plan). If the Card is used to purchase an ineligible expense, isolved Benefit Services will make reasonable attempts to obtain repayment from the participant or isolved Benefit Services will attempt to offset the ineligible expense with future claims filed by the participant under the Plan; however, isolved Benefit Services is not liable to employer for any ineligible expenses not repaid by the participant or not offset by future claims to the extent such ineligible expense did not result from isolved Benefit Services negligence.
- isolved Benefit Services will deactivate any Card upon notification by Employer of termination of employment or when isolved Benefit Services or the Third Party Service Provider determines in its sole discretion that the Card has been improperly used.
- isolved Benefit Services and the Third Party Service Provider are not responsible for any errors that result from inaccurate and/or incomplete data provided by Employer.
B. Responsibilities of Employer
- Employer acknowledges that any and all data or information necessary to provide the Card program will reside on servers owned by or operated on behalf of isolved Benefit Services or its third party vendors.
- Employer hereby grants to isolved Benefit Services and the Third Party Service Provider the right to receive, process and perform all required services in accordance with information and data that is submitted to isolved Benefit Services in order for isolved Benefit Services to provide the Card program. Employer further grants to isolved Benefit Services and the Third Party Service Provider the right to derive and use aggregate and statistical data from such information and data; however, any aggregate or statistical data arising from Protected Health Information as defined in the Business Associate Agreement will be de-identified.
- Employer agrees to only use the participant website made available by isolved Benefit Services for its intended purposes, and will keep such website free from (i) any Intellectual Property that contains profane graphics or text, (ii) advertisements for adult entertainment or escort services or (iii) any click-through to one or more websites that feature or otherwise contain adult entertainment or escort services. Employer acknowledges that all right, title and interest in and to the website are the sole property of isolved Benefit Services and its licensors. Nothing in the Service Agreement will be construed to give Employer any rights in such website.
- As set forth above and in the Fringe Benefit Plan Administration Additional Service Agreement, Employer agrees to make funds available to reimburse isolved Benefit Services for debit card transactions.
- Employer warrants that all funds provided to isolved Benefit Services for payment of benefits under the Employer’s Plans as set forth herein consist of Employer contributions only and do not consist of employee contributions that would need to be maintained in a separate trust pursuant to ERISA.
- Employer hereby grants to isolved Benefit Services and its Third Party Service Provider a non-exclusive, non-transferable, royalty-free license to use Employer’s trademarks in connection with the Card program, in the forms and formats approved by Employer on: (i) the Cards; (ii) periodic statements; and (iii) other communications to Plan participants with respect to the Accounts.
- Employer acknowledges that participants must comply with the Third Party Service Provider’s terms and conditions and the legal requirement relating to Card usage, including but not limited to substantiation of FSA claims.
- Employer agrees that the name of the financial institution which issues the Card, a website Uniform Resource Locator and a customer service phone number will be printed on all Cards. Employer is responsible for all costs incurred by isolved Benefit Services resulting from improper use of the Card.