Illinois Casualty Insurance State Practice Exam

What are special damages awarded for?

1. Emotional distress

2. Loss of use and medical expenses

3. Future earnings potential

4. Legal fees incurred

The correct answer is: Loss of use and medical expenses

Special damages are awarded to compensate an individual for quantifiable monetary losses resulting from an injury or wrongful act. This category specifically includes expenses that can be calculated with precision, such as medical expenses and loss of use of property. Medical expenses cover all costs associated with treatment and recovery, including hospital bills and rehabilitation costs. Loss of use refers to situations where a person cannot utilize their property or resources due to the injury, resulting in financial consequences. In contrast, other options refer to types of damages or losses that are more subjective or cannot be easily quantified. Emotional distress, for instance, is often classified as general damages, which compensate for non-economic losses and are more difficult to calculate. Future earnings potential also falls under general damages as it requires estimating the long-term impact of the injury on a person's ability to earn income, which is inherently uncertain. Legal fees, while related to a legal claim, are not typically categorized as special damages since they are associated with the costs of pursuing a claim rather than direct losses caused by the injury itself. Thus, special damages specifically address clear, measurable financial losses like those mentioned in the correct response.