California Indemnity Dental Insurance, Traditional Fee-for-Service Plan: Indemnity dental insurance is another plan where the plan pays the dentist on a traditional fee-for-service basis. Indemnity dental insurance is an insurance package where the policyholder can choose his or her own dentist and the insurance provider will be the one to pay that designated dentist your fees or, usually, around half of them. This indemnity dental insurance plan allows you to select any licensed dentist for service. An indemnity dental insurance plan is often called a traditional dental coverage plan or a fee for service plan. You will need to pay a deductible on your indemnity dental insurance.