What is the purpose of an indemnity agreement in the bail bonding process?

• A. To obligate the principal and cosigner to reimburse the surety for losses, costs, or amounts paid due to default.
• B. To limit the bondsman's liability to court costs only.
• C. To transfer all responsibility to the defendant's attorney.
• D. To waive the defendant's rights for a lower premium.

Answer: (A)