Final answer:
The principle accurately described with the statement "insured are entitled to recover an amount NOT greater than the amount of their loss" is Indemnity.
Step-by-step explanation:
The principle accurately described with the statement "insured are entitled to recover an amount NOT greater than the amount of their loss" is Indemnity.
Indemnity is a principle in insurance contracts that states that the insured should be compensated to the extent of their actual loss without making a profit from the insurance claim. In other words, the insured can only recover the amount of money that they have lost due to a covered peril or event.
For example, if a person's car is damaged in an accident and the repair cost is $4,000, the insurance company will only indemnify the insured for that amount. They will not pay an amount greater than the actual repair cost to prevent the insured from making a profit from the claim.