Georgia Property & Casualty Practice Exam

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Prepare for the Georgia Property and Casualty Exam. Use multiple choice questions with hints and explanations to enhance your readiness. Ace your test with confidence!

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What is the main purpose of punitive damages?

To reimburse the injured party for specific losses.
To punish a wrongdoer for particularly egregious behavior.
To correct a civil wrong without the need for compensation.
To determine the extent of the insurer's financial obligations.

The correct answer is: To punish a wrongdoer for particularly egregious behavior.

The main purpose of punitive damages is to punish a wrongdoer for particularly egregious behavior. Unlike compensatory damages, which are intended to reimburse the injured party for actual losses incurred as a result of the wrongdoing, punitive damages serve a different goal. They are awarded not just to compensate the victim but to deter the wrongdoer and others from committing similar acts in the future. Punitive damages are typically associated with extreme negligence or intentional misconduct, aiming to emphasize the severity of the offender's actions and the necessity of adhering to legal and social standards. This punitive aspect is crucial in promoting accountability and discouraging particularly harmful behavior in society.