Administrative Hearings

Administrative Hearings A. Notices issued by the Department - Notices shall be effective only when in writing, signed by the Commissioner, his designee, or his attorney. 1. Every notice shall state its effective date. 2. Every notice shall concisely state; a. Its intent and purpose; b. The grounds on which it is based; and c. The provisions of the statutes pursuant to which action is taken or proposed to be taken; but failure to so designate all applicable provisions shall not deprive the Commissioner of the right to rely thereon. 3. A notice may be given by service upon or delivery to the person to be notified or by mailing it, postage prepaid, addressed to such person at his home or at his principal place of business as last on record in the Department, or by electronic delivery with a delivery receipt, if an electronic mail address has been provided. B. Notice of Hearing – Prior to any hearing regarding an administrative action the Department may be taking against any licensee under the jurisdiction of the Department, the Department shall provide the following notice. 1. Notice of at least twenty (20) days before hearing unless a different time period is specified by law. 2. Notice shall include a statement of the terms or substance of the intended action or a description of the subjects and issues involved, and the time, the place and the manner in which interested persons may present their views thereon. C. Hearing - In every case of adjudication in cases of a denial, revocation or suspension of any license or certificate of authority, and in cases of rule-making, where rules must be made after a hearing, and in all cases where required by the Insurance Code, a hearing shall be conducted either in-person, or by telephone or videoconference. D. Right to Counsel – Any person appearing before the Department or any of its representatives shall have the right to be retain their own counsel for representation during the administrative process. E. Exhibits and Evidence: The parties shall communicate and pre-file documentary evidence and/or exhibits with the Commissioner or the Hearing Officer, if one has been designated, not less than three (3) days prior to the hearing date. 1. Parties shall file exhibits electronically when possible. 2. Absent good cause, exhibits that are not pre-filed will not be admitted into the record. F. Presentation of Evidence– Opportunity shall be afforded all parties to respond and present evidence and argument on all issues involved. G. Settlement- Nothing in these rules shall prohibit informal disposition by stipulation, settlement, or consent order. H. Default – If, after proper notice and service, a person fails to appear before the Department for an administrative hearing, a default may be entered against that person, and a final order may be entered by the Commissioner. I. Record – The record shall include: 1. All pleadings, motions, and intermediate rulings; 2. All evidence received or considered, including on request of any party a transcript of all proceedings or any part; 3. A statement of matters officially noticed; 4. Offers of proof, objections and rulings; 5. Proposed findings and exceptions; and, 6. A final order entered into the matter. J. Findings of Fact – Findings of fact shall be based exclusively on the evidence received or on matters officially noticed by the Commissioner through his personal knowledge and expertise. K. Relevant Materials - The Commissioner or his designee has the authority to exclude data or materials deemed to be improper or irrelevant. Formal rules of evidence shall not apply. L. Court Reporter - The Department does not provide a court reporter for administrative hearings; the Department will make and preserve a record of an administrative hearing through the use of audio or video recording. A party wishing to have a court reporter present for an administrative hearing will need to make their own arrangements to retain a court reporter. M. Service of Process - Parties shall be served either personally or by mail, postage prepaid, addressed to such person at his home or at his principal place of business as last on record in the Department, or by electronic delivery with a delivery receipt, if an electronic mail address has been provided, with a copy of any notice of hearing, decision or order. N. Impartiality – Every member of the Department present shall conduct himself in an impartial manner and the presiding official may withdraw if he deems himself disqualified. Any party may file an affidavit of personal bias or disqualification, which shall be ruled upon by the Department, may be granted if it is timely and sufficient, and filed in good faith. O. Power and Duties of Presiding Official – The presiding officer of the hearing shall be either the Commissioner or his designee, and shall have the power to: 1. Maintain order; 2. Rule on all questions arising during the course of the hearing; 3. Permit discovery by deposition or otherwise; 4. Hold conferences for the settlement or simplification of the issues; 5. Make or recommend findings; 6. Generally, regulate and guide the course of the proceedings. P. Burden of Proof – the proponent of a rule or order shall have the burden of proof. Q. Evidence –The Commissioner or his designee has the authority to exclude data or materials deemed to be improper or irrelevant. Irrelevant, immaterial, and unduly repetitious evidence shall be excluded. Any other evidence, oral or documentary, not privileged, may be received if it is a type commonly relied upon by reasonably prudent men in the conduct of their affairs. The Formal Rules of Evidence shall not apply. R. Objections – Objections to the introductions of evidence may be made and shall be noted of record. S. Evidence may be Written – When a hearing can be so expedited (and the interests of the parties will not be prejudiced) any part of the evidence may be received in written form. T. Cross-Examination – Parties shall have the right to conduct such cross-examination as may be required for a full, true disclosure of the facts. U. Official Notice – Official notice may be taken of judicially cognizable facts and of generally recognized technical or scientific facts peculiarly within the Department’s specialized knowledge. Parties shall be notified of material so noticed (including any staff memoranda or data). Parties shall be afforded a reasonable opportunity to show the contrary. V. Continuation of License during Proceeding - When an insurance producer has made a timely and sufficient application for renewal of a license or certificate of authority, with reference to any activity of a continuing nature, the license or certificate of authority does not expire until the administrative action is completed. When a renewal application is denied or an administrative hearing is set to review the licensure status of an insurance producer, or the terms of a certificate of authority are limited, then the license or certificate of authority expires upon the issuance of an Administrative Order by the Commissioner.