Kentucky Insurance Adjuster Practice Exam 2025 - Free Insurance Adjuster Practice Questions and Study Guide

The correct type of damages awarded for tangible losses with quantifiable value is known as Special Damages. These are specifically intended to compensate an injured party for actual out-of-pocket expenses or losses that can be calculated with precision, such as medical bills, repair costs, and lost earnings. Special Damages differ from other types of damages in that they require documentation and evidence to establish the amounts, making them quantifiable in nature.

Compensatory Damages is a broader term that encompasses both Special Damages and General Damages, meaning it includes compensation for both tangible losses with precise monetary values and more subjective losses such as pain and suffering. Punitive Damages, on the other hand, are awarded above and beyond compensatory damages and are intended to punish the wrongdoer and deter similar behavior in the future, rather than to compensate for actual losses. General Damages are typically awarded for non-economic harm and include subjective items like emotional distress or loss of enjoyment of life, which do not have a specific monetary value tied to them, unlike Special Damages that focus on direct financial losses.