Property and Casualty Insurance Practice Exam

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What type of compensation do general damages provide?

Only for economic loss
For non-economic losses such as pain and suffering
For lost wages and medical expenses
For expenses directly related to property loss

The correct answer is: For non-economic losses such as pain and suffering

General damages are designed to compensate an individual for non-economic losses that arise from an injury or wrongful act. These damages address the subjective and intangible harm experienced by the injured party, which includes pain and suffering, emotional distress, loss of enjoyment of life, and other similar non-monetary impacts that do not have a direct economic equivalent. While economic damages, such as lost wages and medical expenses, can be quantified and are considered special damages, general damages focus on the overall impact of the injury on the person's quality of life. Therefore, the correct answer encompasses the essence of what general damages aim to provide, specifically addressing the suffering and emotional turmoil that stem from an injury, rather than mere financial loss.