What type of damages are considered punitive in nature?

Prepare for the Illinois Property and Casualty Exam effectively with multiple choice questions, hints, and explanations. Enhance your readiness for the exam with dedicated study materials.

Punitive damages are intended to punish a defendant for particularly egregious behavior and deter similar actions in the future. Outrageous behavior is characterized by actions that are extreme, shocking, or significantly more severe than simple negligence or minor infractions. This type of conduct typically warrants punishment beyond mere compensatory damages, which only aim to cover the actual loss incurred by the plaintiff.

In the context of punitive damages, outrageous behavior can include intentional misconduct, malice, or extremely reckless actions that demonstrate a blatant disregard for the safety or rights of others. The purpose of imposing punitive damages is to send a strong message that such behavior is unacceptable and should not recur. This is in stark contrast to behaviors classified under standard negligence or minor infractions, which do not meet the threshold necessary for punitive measures.

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