What type of damages can be awarded for outrageous or intentional acts?

Study for the Utah Property and Casualty Insurance Producer Exam. Prepare with flashcards and multiple-choice questions, each providing hints and explanations. Get ready for your exam!

Punitive damages are specifically designed to punish a defendant for particularly egregious or wrongful conduct and to deter others from engaging in similar actions. When intentional or outrageous acts occur, such as in cases of fraud, assault, or extreme negligence, the court may decide that the misconduct goes beyond mere compensatory issues and warrants a penalty that reflects the severity of the behavior.

Unlike compensatory damages, which are intended to reimburse the victim for actual losses suffered, punitive damages serve a different purpose by focusing on the defendant's actions. These damages can significantly exceed the actual damages suffered by the plaintiff, emphasizing the degree of wrongdoing and societal condemnation. Hence, they play a crucial role in civil law when dealing with intentional wrongdoings where mere compensation is insufficient to address the severity of the act.

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