(1) The board shall select an insurer or insurers through a competitive bidding process to administer the pool. The board shall evaluate bids submitted on the basis of criteria established by the board which shall include: (a) The insurer's proven ability to handle individual sickness and accident insurance; (b) The efficiency of the insurer's claim-paying procedures; (c) The insurer's estimate of total charges for administering the pool; and (d) The insurer's ability to administer the pool in a cost-effective manner.
(2) The administering insurer shall serve for a period of three years subject to removal for cause. At least one year prior to the expiration of each three-year period of service by an administering insurer, the board shall invite all insurers, including the current administering insurer, to submit bids to serve as the administering insurer for the succeeding three-year period. Selection of the administering insurer for the succeeding period shall be made at least six months prior to the end of the current three-year period.