Building Code Administrators and Inspectors Florida Principle and Practice Licensure Practice Exam

If an installment of Workers' Compensation is not paid on time, what is the interest rate that may be levied on the unpaid amount per year?

1. 8%

2. 10%

3. 12%

4. 15%

The correct answer is: 12%

The correct answer is 12% because Florida law stipulates that if an installment of Workers' Compensation is not paid in a timely manner, an interest rate of 12% per year can be imposed on the unpaid amount. This interest serves as a means to encourage timely payments and to compensate the recipient for the delay in receiving funds that are rightfully theirs. The 12% rate is significant in ensuring that obligations under Workers' Compensation laws are taken seriously, and it reflects legal requirements established within the state. Understanding this rate is crucial for anyone involved in the administration of Workers' Compensation claims, as it impacts both the calculations for outstanding payments and the overall financial responsibilities involved.