Which of the following is NOT a component of compensatory damages?

Prepare for the Louisiana Automobile Adjusters License Exam. Study with flashcards and multiple-choice questions, each question includes hints and explanations. Ace your exam effortlessly!

Compensatory damages are intended to reimburse a party for losses suffered as a result of another's actions. This includes various forms of direct loss such as pain and suffering, future wages, and reasonable medical expenses, which are all aimed at restoring the victim to the financial position they were in prior to the incident.

Pain and suffering accounts for the emotional distress and physical pain endured by the victim. Future wages cover loss of income that the victim would have earned had the incident not occurred. Reasonable medical expenses compensate for the costs associated with medical treatment required due to the incident.

Exemplary damages, on the other hand, do not fall under compensatory damages. Instead, they are intended to punish the wrongdoer for particularly egregious behavior and to deter similar conduct in the future. Since exemplary damages are not aimed at compensating the victim for their actual losses, they do not qualify as a component of compensatory damages.

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