Los Angeles Claims Adjuster Property and Causality Practice Exam

Which type of release allows for payments of future special damages after general damages are settled?

1. No Release or Walk-Away

2. Scheduled Payment Release

3. Structured Settlement

4. Full Release Settlement

The correct answer is: Scheduled Payment Release

The type of release that allows for payments of future special damages after general damages are settled is known as a Scheduled Payment Release. This arrangement is specifically designed to address the unique needs of claimants who may require compensation for ongoing or future special damages, such as medical expenses or lost wages that extend beyond the initial settlement. A Scheduled Payment Release typically delineates specific payment intervals and amounts that will be disbursed to the claimant over time, rather than a lump-sum payment. This structure provides financial support as medical treatments or other services are rendered, ensuring that individuals have the necessary funds to cover those expenses as they arise. The ability to receive future payments makes this option particularly advantageous for claimants whose needs may evolve post-settlement. In contrast, other release types may not accommodate future special damages in the same manner. A No Release or Walk-Away implies that the claimant is foregoing any settlement, while a Structured Settlement may provide a series of payments usually for both general and special damages but might not specifically reference adjustments for future special damages. A Full Release Settlement generally indicates that all claims have been settled, thus limiting any further claims or entitlement to future payments. This comparison highlights why the Scheduled Payment Release is uniquely suited for situations involving ongoing financial needs after an