If a settlement payment is delayed due to misfiling by the carrier, the employee is entitled to what?

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Prepare for the California Self‑Insurance Plans (SIP) Exam with our interactive quiz. Benefit from multiple-choice questions, detailed explanations, and essential tips to enhance your knowledge and succeed in your exam!

Multiple Choice

If a settlement payment is delayed due to misfiling by the carrier, the employee is entitled to what?

Explanation:
When a settlement payment is delayed because the carrier misfiles, California law imposes both a penalty and interest on the amount due. The penalty is 10% of the payment, and interest accrues on the amount from the due date at the statutory rate (10% per year) until payment is made. This combination addresses the carrier’s late payment and compensates the employee for the delay. So the employee is entitled to both the 10% penalty and the interest, not just one or the other.

When a settlement payment is delayed because the carrier misfiles, California law imposes both a penalty and interest on the amount due. The penalty is 10% of the payment, and interest accrues on the amount from the due date at the statutory rate (10% per year) until payment is made. This combination addresses the carrier’s late payment and compensates the employee for the delay. So the employee is entitled to both the 10% penalty and the interest, not just one or the other.

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