An agreement to reimburse another individual or legal entity who incurs a loss that is covered by the agreement. An indemnity against loss may be partial or whole. A buyer may obtain indemnity insurance, for example, to insure against damage to or destruction of goods that may occur after title has passed to the buyer.


A bond protecting the insured against losses from others failing to fulfill their obligations.


An option to buy or sell a specific quantity of a stock at a state price within a given time period.


An act of legislation, granting exemption from prosecution to certain people.

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