(a)

(1) The State and Public School Life and Health Insurance Board shall choose the Executive Director of the Employee Benefits Division of the Department of Finance and Administration with the approval of the Director of the Department of Finance and Administration.

(2)

(A) The Executive Director of the Employee Benefits Division of the Department of Finance and Administration shall be employed by and serve at the pleasure of the Director of the Department of Finance and Administration.

(B) However, the board may recommend the removal of the Executive Director of the Employee Benefits Division of the Department of Finance and Administration, but removal is subject to the approval of the Director of the Department of Finance and Administration.

(3) The Executive Director of the Employee Benefits Division of the Department of Finance and Administration shall employ staff adequate to manage the State and Public School Life and Health Insurance Program within the funds appropriated for the program within the Department of Finance and Administration.

(b) The Executive Director of the Employee Benefits Division of the Department of Finance and Administration shall establish internal controls for the fiscal management of the program.

(c)

(1) The Executive Director of the Employee Benefits Division of the Department of Finance and Administration and his or her staff shall be located in the Employee Benefits Division of the Department of Finance and Administration.

(2) Funds collected from employers, participating employees, retirees, and any other sources for the program, including plan options offered under the program, shall be used solely to pay medical claims, drug claims, premiums, benefits, and direct administrative expenses of the program.

(d) The Executive Director of the Employee Benefits Division of the Department of Finance and Administration shall administer this subchapter and the rules and orders of the division and the board.

(e)

(1) The Executive Director of the Employee Benefits Division of the Department of Finance and Administration may require all participating entities to appoint health insurance representatives who shall adhere to the policies adopted by the board and the rules and procedures issued by the Executive Director of the Employee Benefits Division of the Department of Finance and Administration in managing the enrollment and premium payment processes of the state agency or school district.

(2) The Executive Director of the Employee Benefits Division of the Department of Finance and Administration may request the removal of a health insurance representative to ensure necessary internal controls.

(3)

(A) The Executive Director of the Employee Benefits Division of the Department of Finance and Administration has the authority to supervise the implementation and day-to-day management of the program and other employee benefits, plans, and individual and group policies made available to participants, if applicable.

(B) The authority granted under subdivision (e)(3)(A) of this section includes without limitation supervising:

(i) Life insurance coverage;

(ii) Accident coverage;

(iii) Dental coverage;

(iv) Disability benefit programs;

(v) Optional retirement programs;

(vi) Deferred compensation;

(vii) Cafeteria plans; and

(viii) Such other benefit plans, benefit programs, and individual and group benefit coverage that are offered from time to time to state employees, state employee retirees, public school employees, and public school employee retirees.

(C) The authority granted under subdivision (e)(3)(A) of this section does not include supervising the State Employees Benefit Corporation benefit plan in effect on July 1, 1995.

(D) In addition, the Executive Director of the Employee Benefits Division of the Department of Finance and Administration and the board may utilize the services of healthcare consultants and actuaries if necessary as provided for through the appropriation of the division.

(E) The Arkansas State Police Employee Health Plan is exempt from any mandatory participation required by this section.