Which type of damages are reimbursable by the Recovery Fund?

• A. Actual or compensatory damages (punitive damages not eligible)
• B. Punitive Damages Only
• C. All Damages including Punitive
• D. Interest Only

Answer: (C)

The Recovery Fund is meant to restore a claimant to the financial position they would have been in due to a licensee’s wrongdoing, which means paying actual losses (compensatory damages). Punitive damages are not eligible for reimbursement, as the fund is not intended to punish the licensee but to cover proven, actual losses. So only actual or compensatory damages are reimbursable. The other options would either include punitive damages or focus on non-damages like interest, which aren’t covered.