If nothing is done within 60 days, what is added?

• A. 60 days
• B. 10% plus 7% interest
• C. 0%
• D. 15%

Answer: (B)

When a required self-insurance obligation isn’t addressed in time, a penalty plus interest is added to encourage prompt compliance. If nothing is done within 60 days, a 10% late penalty is assessed on the amount due, and interest accrues at 7% per year on the unpaid balance from the due date onward. The 7% rate is a statutory simple interest rate, not a one-time fee. For example, on $1,000 owed, you’d incur a $100 penalty plus ongoing interest; the exact interest depends on how long the payment remains unpaid. The other options don’t fit because they either reflect the timing rather than the amount, or propose incorrect rates.