Don Annuities Give Defendant Unfair Credit?
A. Some opponents of using age ratings purport that the annuity pricing method gives the defendant an unfair “credit” for the degree to which the injury has reduced the plaintiff’s life expectancy. Because the plaintiff’s life expectancy is reduced, the annuity price is less. While this assertion may have merit in the case of a damage award for future lost earnings, if the injury in fact causes the plaintiff to predecease his pre-injury work life expectancy, it is meaningless in regard to damages for future medical expenses. Recognizing that the goal in awarding damages for future medical expenses is only to provide for such medical expenses, not to punish the defendant, then it is clear that the fact that a shorter life expectancy results in a lower cost does not give the defendant an unfair credit. The lower annuity cost simply reflects the unfortunate and unintended fact that the plaintiff has a diminished life expectancy as a result of the injury or perhaps another pre-existing con
