Compensation and Damages Flashcards
6 cards from real Accident Lawyer Tips practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Compensation and Damages flashcards as text
What is a 'lien' in an accident settlement?
Answer: A legal claim by a healthcare provider or insurer to be repaid from your settlement proceeds
Liens allow medical providers, health insurers, or government programs like Medicare to recover payments they made for accident-related treatment from the settlement.
What is 'Medicare's right of recovery' in accident settlements?
Answer: Medicare's right to be reimbursed from your settlement for medical costs it paid related to the accident
Federal law requires that Medicare be reimbursed from personal injury settlements for any accident-related medical expenses it paid.
What is a 'Medicare Set-Aside' (MSA) in a settlement?
Answer: A portion of the settlement set aside to pay future accident-related medical costs that Medicare would otherwise cover
An MSA allocates part of a settlement to cover future accident-related medical expenses, protecting Medicare from paying those costs going forward.
What is the difference between 'general' and 'special' damages in a personal injury claim?
Answer: Special damages are specific calculable losses; general damages are non-economic losses like pain and suffering
Special damages are quantified economic losses with receipts, while general damages cover subjective losses like pain, suffering, and emotional distress.
What is 'loss of earning capacity' as a distinct category of accident damages?
Answer: Permanent reduction in the victim's ability to earn income over their working lifetime
Loss of earning capacity compensates for permanent impairment to future earnings potential, not just the income lost during recovery.
What are 'nominal damages' in an accident case?
Answer: A token award recognizing that a legal right was violated even though no significant harm occurred
Nominal damages are symbolic awards, typically one dollar, granted when liability is proven but no actual compensable harm is demonstrated.