What type of hearing is required if an agency's action significantly affects the financial interests of an entity?

The requirement for a trial-type hearing arises under administrative law when an agency takes action that significantly affects the financial interests of an entity. A trial-type hearing is characterized by formal procedures, including the right to present evidence, conduct cross-examinations, and have an official record of the proceedings. This type of hearing provides a level of due process protection to affected parties, ensuring they have a fair opportunity to contest the agency's actions and present their case.

In scenarios where the financial stakes are high, the law mandates a thorough and structured process to safeguard the interests of the entity affected by the agency's decision. This involves not just a summary of relevant facts but a comprehensive examination of evidence and arguments, similar to what is experienced in judicial proceedings.

On the other hand, options such as informal hearings or summary hearings do not afford the same level of procedural rigor or protection, making them unsuitable for situations with significant financial implications. Additionally, the option stating no hearing is needed overlooks the necessary safeguards required by the legal framework to address serious financial impacts adequately. Thus, a trial-type hearing ensures that all parties receive a fair chance to argue their position with appropriate legal protections in place.