Which type of damages awards money for specific, identifiable expenses?

Prepare for the CAS Data Insurance Series Courses - Insurance Accounting Test with engaging flashcards and multiple choice questions. Each answer is explained to enhance your understanding. Prep efficiently and excel in your exam!

Special damages refer to compensation for specific, identifiable expenses that a plaintiff has incurred as a result of the defendant's actions. These may include medical bills, rehabilitation costs, lost wages, property damage, and other quantifiable losses that can be clearly documented. The essence of special damages is their tangible nature, allowing the injured party to recover a precise amount that aligns with the actual financial impact of the incident.

In contrast, general damages are awarded for more subjective losses such as pain and suffering, emotional distress, or loss of companionship, which do not have a specific monetary value attached and are more difficult to quantify. Punitive damages serve a different purpose altogether, aiming to punish the wrongdoer and deter similar conduct, rather than to compensate for specific losses. Nominal damages recognize that a legal wrong has occurred, but they do not involve a significant amount of money and are often awarded when actual damages cannot be proven or are minimal.

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