Chapter 6 Exposure Recognition

Question 1

Compensatory Damages

Answer 1

Intended to compensate, make whole or replace what was lost.
Ex: Paying a claimant for the damage to his vehicle after an accident.

Question 2

Direct Damages

Answer 2

Damages that are immediate and foreseeable from a loss

Question 3

Indirect (Consequential) Damages

Answer 3

Incurred as a consequence of direct damages.
Ex: Need for a rental

Question 4

Punitive Damages

Answer 4

Intended to punish the wrong does for his conduct as a deterrent to repeating that behavior
Ex: Drinking and driving (Most states insurance do not cover punitive damages.)

Question 5

Liquidated Damages

Answer 5

Specified damages that are noted at the time of entering into a contract.
Ex: Premium

Question 6

Special (Compensatory)

Answer 6

Out of pocket expenses incurred on a bodily injury claim by the claimant
Ex: Medical bills and lost wages

Question 7

General (Compensatory)

Answer 7

Non- economic damages such as pain and suffering and emotional distress

Question 8

Extra- Contractual Unit

Answer 8

Claims which have an allegation of “bad faith” or other delineated handling particulars

Question 9

Large Loss Unit

Answer 9

Handlers and Managers who oversee files which qualify for reassignment per the group’s guidelines.
Injury Trigger
Financial Trigger
Claims Handling Trigger

Question 10

Special Damages
($)

Answer 10

• Medical Bills
  
  • Wages (net pay)
  • Prescription Medicine
  • Transportation Expenses
  • Medical Rental Equipment
  • Funeral Expenses
    Other Economic Losses, i.e., lawn care, housekeeping, childcare, etc.

Question 11

General Damages

Answer 11

• Pain and Suffering
  
  • Loss of Consortium
  • Disability (actual condition)
  • Scarring and Disfigurement
  • Emotional Trauma
  • Permanency
  • Inconvenience

Question 12

Process

Answer 12

“the rules” or “the outlined expectations for doing (or not doing) something in a particular way”

Question 13

Communication

Answer 13

process is created and communicated by the organization (email, Team Meetings, web page posting)

Question 14

Training

Answer 14

The Training department is consulted to address what if any training is needed or requested.

Question 15

Audit

Answer 15

The Audit department partners with the above mentioned groups to ensure that the process is written, communicated and trained, then is assessed properly from a quality assurance standpoint.

Question 16

Process and Communications Steps

Answer 16

Process, Communication, Training, Audit