A claimant sues for $50,000 in medical bills, $20,000 in lost wages, $30,000 for pain and suffering, and $200,000 in punitive damages. Which category do the medical bills and pain and suffering each belong to?

Why this is the answer

Compensatory damages are divided into two subcategories: Special damages (also called economic damages) are quantifiable out-of-pocket losses — medical expenses ($50,000) and lost wages ($20,000) in this example. General damages (non-economic) compensate for subjective, hard-to-quantify harm — pain and suffering ($30,000) here. Punitive (exemplary) damages ($200,000) are not compensatory; they are imposed to punish a defendant for malicious, fraudulent, or grossly negligent conduct and to deter future misconduct. Standard liability insurance covers compensatory damages; punitive damages are often excluded or limited.