What penalty applies to late PD payments?

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

What penalty applies to late PD payments?

Explanation:
When permanent disability benefits are paid late, California workers’ compensation law imposes a penalty of 10% on the overdue amount. This 10% penalty is designed to encourage timely payment of PD benefits to injured workers. It applies to the amount due for the late payment and is in addition to the PD itself, with possible limited exceptions if there was a legitimate, recognized reason for the delay. So, the penalty for late PD payments is ten percent.

When permanent disability benefits are paid late, California workers’ compensation law imposes a penalty of 10% on the overdue amount. This 10% penalty is designed to encourage timely payment of PD benefits to injured workers. It applies to the amount due for the late payment and is in addition to the PD itself, with possible limited exceptions if there was a legitimate, recognized reason for the delay. So, the penalty for late PD payments is ten percent.

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