Which type of damages is NOT a part of compensatory damages?

Prepare for the AdjusterPro Insurance Adjuster Licensing Test. Utilize flashcards and multiple choice questions, each with helpful hints and thorough explanations. Equip yourself for success on your upcoming licensing exam!

Compensatory damages are intended to compensate the injured party for losses suffered due to another party's actions. They can be broken down into different categories, including general damages and special damages, both of which provide compensation for actual losses incurred.

General damages refer to non-monetary losses such as pain and suffering, emotional distress, or loss of enjoyment of life. Special damages, on the other hand, cover quantifiable monetary losses, such as medical expenses, lost wages, or property damage. Economic damages typically align with special damages, focusing on objective financial losses.

Punitive damages, however, serve a different purpose altogether. They are not intended to compensate the injured party for their losses but rather to punish the wrongdoer for particularly egregious or reckless behavior and to deter others from similar misconduct. This distinction is crucial as punitive damages do not fit within the framework of compensatory damages, which aim solely to restore the victim to their previous position or account for their losses. Therefore, identifying punitive damages as outside the realm of compensatory damages is key to understanding the complete picture of damages in legal contexts.

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