Which of the following is true about late PD payments?

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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

Which of the following is true about late PD payments?

Explanation:
The main rule being tested is that late permanent disability payments incur a statutory penalty. In California, when permanent disability benefits are paid late, the employer or insurer must pay a penalty of 10% of the amount that is overdue. This penalty is designed to ensure timely PD benefits and compensate the employee for the delay. So the correct figure is 10%. The other percentages don’t reflect this rule. The 10% penalty applies specifically to late PD payments, not to zero, five, or fifteen percent.

The main rule being tested is that late permanent disability payments incur a statutory penalty. In California, when permanent disability benefits are paid late, the employer or insurer must pay a penalty of 10% of the amount that is overdue. This penalty is designed to ensure timely PD benefits and compensate the employee for the delay. So the correct figure is 10%.

The other percentages don’t reflect this rule. The 10% penalty applies specifically to late PD payments, not to zero, five, or fifteen percent.

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