A principle of insurance that states a person should be made whole, no better, no worse, is

Subrogation refers to the right of an insurer to pursue a third party that caused an insurance loss to the insured. This principle allows insurers to recover the amount they paid for a claim from the party responsible for the loss. While subrogation is related to indemnity, it serves a distinct function in the claims process rather than establishing the compensation principle itself.

Indemnity is the guiding principle in insurance that dictates that the insured should only be compensated for their actual losses. It emphasizes restoring the insured to the same financial position they were in before the loss occurred, ensuring that they do not receive a financial advantage from their insurance coverage.

Adhesion describes contracts drafted by one party, where the other party has limited or no ability to negotiate terms. In insurance, policies are typically non-negotiable and presented on a take-it-or-leave-it basis. While this characteristic is significant in understanding contract law in insurance, it does not pertain to the principle of making the insured whole.