Washington State Insurance Practice Exam

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What are special damages?

Compensate the injured person for pain and suffering, mental anguish, etc.
Imposed on defendants engaged in hazardous activities
Specific out of pocket expenses for medical, miscellaneous expenses, and loss of wages
Individuals or businesses protected by the policy

The correct answer is: Specific out of pocket expenses for medical, miscellaneous expenses, and loss of wages

Special damages refer to specific out-of-pocket expenses incurred as a direct result of an injury or loss. This can include medical expenses, miscellaneous costs, and loss of wages due to the injury. Special damages are quantifiable economic losses that an injured party has incurred and can be calculated objectively. In contrast, general damages (mentioned in option A) compensate for more intangible losses such as pain and suffering or emotional distress. Option B is incorrect as it refers to punitive damages, which are meant to punish the defendant rather than compensate the plaintiff's losses. Option D is unrelated to the concept of special damages in insurance practice.