Which principle prevents an insured from having more than one indemnity payment for a loss?

The principle that prevents an insured from receiving more than one indemnity payment for a loss is the principle of contribution. This principle ensures that when multiple insurance policies cover the same risk, the insured can only claim compensation up to the total amount of their loss, and the insurers share the payment proportionately according to their respective coverage.

For example, if an individual has two insurance policies covering the same property and suffers a loss, contribution ensures that they cannot claim the entire loss from both insurers, which would lead to an unjust enrichment. Instead, the principle mandates that the insurers involved will contribute to the indemnity payment based on their share of the risk.

The other principles listed serve different purposes in insurance. The principle of indemnity ensures that the insured is restored to their financial position prior to the loss, but it does not specifically govern the number of claims an insured can make across different policies. Subrogation allows insurers to recover costs from third parties after paying a claim, and insurable interest requires the insured to have a legitimate stake in the insured item to prevent moral hazard.