Who is entitled to a hearing if charged with an unfair method of competition?

In cases where a licensee is charged with an unfair method of competition, that individual or entity has the right to a hearing. This provision is grounded in the principle of due process, which ensures that someone accused of a violation has an opportunity to defend themselves before any penalties or sanctions are imposed. The hearing process allows the licensee to present evidence, challenge the accusations, and seek a fair resolution.

The rationale behind this right is to maintain accountability and fairness within the regulatory framework governing insurance and competition. By granting the licensee a hearing, the regulatory body acknowledges the importance of transparency and fairness in enforcing rules meant to protect the market as well as consumers from deceptive practices.

In contrast, while the Director or the insurance company may have roles in the oversight and enforcement of these regulations, they do not have the same entitlement to a hearing. Rather, it’s the individual or entity being accused— the licensee— who must be afforded this procedural safeguard.