Indemnity is a contract to reimburse another for actual loss suffered, which is a fundamental principle in insurance and contractual agreements where one party agrees to compensate the other for the losses incurred.

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Indemnity Is

Question 22

Multiple Choice

Indemnity is

A) the sharing of payment for a debt (or judgment) among persons who are all liable for the debt.
B) a contract to reimburse another for actual loss suffered.
C) the right of a person who has paid an entire debt (or judgment) to get back a fair share of the payment from another person who is also responsible for the judgment.
D) the obligation to share payment of a debt (or judgment) when several persons are liable for the debt.

Correct Answer: