What is that principle which states that an insured may not be compensated by the insurance company in an amount exceeding the insured's economic loss?

Question

Quizplus · Accepted Answer

The principle of indemnity states that an insured may not be compensated by the insurance company in an amount exceeding the insured's economic loss, i.e., the amount that will restore the insured to the financial position he or she was in prior to the loss or damage. The purpose of indemnity is to prevent the insured from profiting from a loss and to discourage the insured from intentionally causing a loss in order to collect insurance proceeds.

What Is That Principle Which States That an Insured May