Which of the following accurately describes punitive damages?

Punitive damages are specifically designed to punish a defendant for particularly egregious or wrongful behavior and to deter similar actions in the future. They are awarded over and above compensatory damages, which compensate the plaintiff for actual losses such as medical expenses or lost wages. Unlike compensatory damages, which aim to make the injured party whole, punitive damages serve a broader purpose of societal deterrence and accountability. In cases with malicious, fraudulent, or wanton behavior, courts may impose punitive damages to reflect the severity of the defendant's actions.

The focus on punishment and deterrence distinguishes punitive damages from other types of damages, which are typically tied to direct losses incurred by the plaintiff. This understanding illustrates the importance of punitive damages in both providing justice for the victim and addressing behavior that should not be tolerated in society.