Texas Property and Casualty License Practice Exam

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Study for the Texas Property and Casualty License Exam. Prepare with flashcards and multiple choice questions, each with hints and explanations. Get ready for your exam!

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What is the goal of punitive damages?

To provide financial compensation
To recover lost earnings
To punish the wrongdoer due to gross negligence
To address minor infractions

The correct answer is: To punish the wrongdoer due to gross negligence

The goal of punitive damages is to punish the wrongdoer for their actions, particularly if those actions involve gross negligence or intentional misconduct. Unlike compensatory damages, which are intended to reimburse the victim for actual losses, punitive damages serve a broader purpose of deterring similar behavior in the future. By imposing a financial penalty on the wrongdoer, punitive damages aim to reinforce societal standards for conduct and discourage egregious actions. This is especially significant in cases where the defendant's conduct demonstrates an extreme disregard for the safety and well-being of others. Therefore, the focus on punishing the wrongdoer reflects the legal system's interest in promoting accountability and fostering a sense of justice, rather than merely compensating the victim for losses incurred.