Which term describes compensation for intangible losses like mental anguish?

Prepare for the Kentucky Insurance Adjuster Exam with our quizzes featuring flashcards and multiple-choice questions. Each question includes hints and explanations to help you succeed!

The term that describes compensation for intangible losses such as mental anguish is general damages. General damages are intended to cover non-economic losses that are not easily quantifiable, like pain and suffering, loss of companionship, and emotional distress. This distinguishes them from special damages, which are intended to compensate for tangible losses such as medical expenses and lost wages.

General damages focus on the subjective experiences of the individual, such as the emotional impact of an injury or loss, which often cannot be measured through receipts or bills. This type of compensation aims to provide a sense of justice and remediation for the emotional suffering endured by the claimant.

Other types of damages, like compensatory damages, encompass both general and special damages but do not specifically limit the focus to intangible losses. Punitive damages serve a different purpose, as they are awarded to punish the wrongdoer and deter future misconduct rather than to compensate the victim for their losses. Thus, the specificity of general damages in addressing non-economic, intangible losses like mental anguish makes it the correct term in this context.

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