• An indemnity clause is a clause in a reinsurance contract that requires the exchange of information between the cedant and the reinsurer. Essentially, it requires the assignor to notify its reinsurer in a timely manner and cooperate with it in settling claims, and may also grant the reinsurer a “right of association” in defense of any claim, action or proceeding that may involve reinsurance. The clause may also require the written approval of the reinsurer for any compromise or settlement.