California-Specific RulesQuestion 66 of 215
Under California Civil Code §3287, what statutory rate of interest accrues on amounts wrongfully withheld from a claimant once the amount becomes certain?
a.5% per year, simple
b.7% per year, simple
c.10% per year, simple
d.12% per year, compounded monthly
Explanation
Cal. Civ. Code §3287, together with Article XV §1 of the California Constitution, sets the statutory interest rate at 10% per year (simple) on damages that are certain or capable of being made certain by calculation. This rate applies to delayed claim payments once the amount is established and is the figure tested on the P&C exam.
Law Reference: Cal. Civ. Code §3287; Cal. Ins. Code §10111.2Practice all 215 questions free — no signup required.
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