Which of the following best describes the effect of failing to hold a demanded hearing?

Choosing the answer that it is treated as a denial of relief sought is accurate because failing to hold a demanded hearing signifies a lack of action or response from the relevant authority regarding the complaint. In regulatory contexts, such as those pertaining to independent adjusters, when a hearing is requested but not conducted, it often implies that the grievance or request raised by the complainant is not being addressed. As a result, this inaction is typically interpreted as a denial of the relief that the complainant is asking for.

This concept reinforces the importance of procedural compliance in regulatory practices—ensuring that all parties, especially those seeking resolution, have access to appropriate forums to voice their concerns and receive due process. The other options suggest effects that do not align with this principle of administrative law, as the failure to hold a hearing does not enable further opportunities or additional time for the complainant, and it would not typically result in sanctions against the director. Instead, the primary implication is the denial of relief, which underscores the critical role of hearings in the regulatory process.