What is the penalty for late payment of a Med/Legal bill?

Study for the California Workers Compensation exam. Use flashcards and multiple choice questions, each with hints and explanations. Be ready for your test!

The penalty for late payment of a Med/Legal bill in California Workers Compensation is actually a 15% penalty plus simple interest at the rate of 10%. The correct answer recognizes that late payment issues are governed by specific regulations to ensure timely compensation and discourage delays.

When a liability is established for a Med/Legal bill, employers or their insurance carriers are mandated to pay these bills on time. Failure to do so incurs penalties that serve to motivate prompt payment and uphold the financial integrity of the workers' compensation system.

In considering the other options, while there are different rates and structures presented, none align with the specific requirements set forth in California regulation regarding Med/Legal bills. Therefore, it's essential for claims adjusters and stakeholders to be aware of the correct penalties to ensure compliance and avoid unnecessary costs.

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