Indemnification

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Indemnification

Used in insurance policy agreements as to compensation for damage or loss. In the context of corporate governance, Director Indemnification uses the bylaws and/or charter to indemnify officers and directors from certain legal expenses and judgments resulting from lawsuits pertaining to their conduct.

Indemnification

The collection of money for damages. For example, indemnification occurs in insurance when the policyholder receives money to compensate for an insured event. Likewise, a company may receive indemnification from an employee, especially a major executive, if the company suffers damages in a lawsuit as a result of the employee's illegal or unethical actions.

indemnification

The process of shifting a loss from one party to another either because of an express agreement by the parties or because the law requires it under the circumstances.

Example: A purchaser of real estate discovers the property is subject to a lien that was placed against it prior to sale and pays the lien in order to avoid foreclosure; then the purchaser is entitled to indemnification, or reimbursement, from the prior owner who breached the warranties in the deed.

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The costs of indemnification insurance also rose and threatened to become unaffordable for individuals and families.
Further, GOL will begin monetary indemnification proceedings immediately, or as agreed upon by each family, and will discuss the matter with the relative legally entitled to do so.
Indemnification provisions should be designed to maximize the benefits of insurance, reduce insurance premiums, and minimize disputes among the parties and their insurance carriers.
They often seek a contractual allocation of potential environmental liabilities or use indemnification provisions, which do not affect CERCLA liability but provide for reimbursement of the indemnified party's cleanup costs.
members can download their Model GFE Cost Indemnification Agreement and/or Services Agreement from RESPRO's web site at www.
Future liabilities that would have been covered by the extinguished indemnifications will be recorded as expense on the partnership's income statement as those liabilities are identified.
The GSE continues to receive the loan guaranty fee, with an indemnification agreement in place in the unlikely event the borrower defaults on the loan.
Income tax indemnifications are contractual arrangements between two parties whereby one party will reimburse the other for income taxes paid to a taxing authority related to tax positions that arose, typically, before the transaction in which the indemnification was established.
The company does not believe that the ultimate resolution of the post-closing adjustment or liabilities, if any, under the indemnifications will have a material impact on the company's financial condition or results of operations.
Ryerson Tull will receive one-third of any environmental insurance recovery, up to a maximum amount of $21 million, related to its environmental indemnifications in connection with the Inland Steel Company transaction.