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

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.

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.