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STRATEGIES FOR PAYING DAMAGES

The central problem in determining the proper compensation for an injury is the speculative nature of the claimant's future medical and economic needs. Traditional insurance schemes pay medical costs as they are incurred. If the claimant requires treatment five years after the injury, that claim is paid by the insurer at the time the care is rendered. This creates an open-ended obligation, but it obviates the need to speculate on the future needs of the claimant when evaluating the claim.



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