Why Is an Insured Entitled to Collect Only the Amount

Why is an insured entitled to collect only the amount of the actual loss incurred from its insurance coverage?

A) Contracts of indemnity prevent profiting from an insured against event.
B) A bank is entitled to an indemnity contribution on a prorated basis.
C) Insurance coverage typically covers a minimum portion of the value of property.
D) A bank may be entitled to an interest in the proceeds for a secured loss.