To indemnify and hold harmless means

• A. To exempt an individual or entity from responsibility for claims made against the organization and to reimburse or pay for damages incurred as a result of such claims.
• B. To transfer ownership of property to another party.
• C. To waive all rights to sue the association.
• D. To guarantee the association against all lawsuits.

Answer: (A)

Indemnify and hold harmless is a contractual promise where one party agrees to cover costs, defend, and reimburse damages for claims that arise from the other party’s actions. In a community association context, this means a vendor or service provider would take responsibility for defending the HOA against claims and paying any damages or costs that result from the vendor’s negligence or actions, thereby protecting the HOA from those liabilities.

This matches the described concept of exempting the organization from responsibility for claims and paying damages incurred as a result. The other options describe things that aren’t about shifting liability or defending against claims: transferring ownership, waiving rights to sue, or guaranteeing immunity from all lawsuits.