What aspect of punitive damages distinguishes them from other types?

Prepare for the USAA Licensing Exam with interactive flashcards and multiple choice questions, each featuring hints and explanations. Get exam-ready today!

Punitive damages are specifically designed to serve as a punishment to the defendant and to deter similar wrongful behavior in the future. This distinguishes them from compensatory damages, which are intended to make the injured party whole by covering actual losses or harm suffered, such as lost earnings or medical expenses. Punitive damages go beyond merely compensating the victim; they focus on the defendant's conduct, aiming to penalize actions that are particularly harmful, reckless, or intentional in nature. Therefore, the intent behind punitive damages is not just compensatory but punitive, which is a critical difference from other types of damages.

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