compensated surety
Defined in 1 dictionary — Case Law
Definitions from Case Law
From 296 U.S. 526 - Chapman v. Hoage · 1936Most cited · 173 citing opinions
The rule that any modification of the principal obligation releases the surety is also abated in the case of a compensated surety or indemnitor, who is discharged only so far as his right is shown to be in fact prejudiced by action of the indemnitee. One who engages in the business of insurance for compensation may properly be held more rigidly to his obligation to indemnify the insured than one whose suretyship is an undertaking uncompensated and casual.