Sec. 14.07.03.03. Notice of Disciplinary Action and Hearing

A. In cases involving potential producer disciplinary action, which may be taken after a hearing with the Director of Fiscal Operations, Director of Underwriting or the Director's designee, the Director or the designee shall provide the producer with written notice of the following:

(1) Date, time, place, and nature of the hearing;

(2) Legal authority for the action;

(3) Proposed action or remedy, if any; and

(4) A short and simple statement of the matters asserted as violating the Fund's binding rules or other related law.

B. If the Fund should decide, based on a hearing held pursuant to §A or a preliminary determination that a producer's conduct is likely to cause substantial and immediate harm to the Fund, to policyholders, or to others, to refuse further applications from a producer or to terminate the producer's binding authority, or both, the Fund's Director of Fiscal Operations, Director of Underwriting or designee shall provide the producer with written notice stating the:

(1) Action taken by the Fund;

(2) Legal authority for the action;

(3) Reason for the action;

(4) Producer's right to a hearing before a member of the Board of Trustees within 10 days of the effective date of the Fund's action; and

(5) Time and place for the hearing, if the producer should elect.

C. In any notice, the Director or Director's designee may require the producer to state an intention to appear at the hearing as a condition precedent to the hearing.