The same way your kettle does, there is a thermal switch which pops open at a given temp.
The amount of “free” water remaining in the pot controls the overall temperature in the pot similarly to how any pot with water in it will never be hotter than the boiling point of water until all the water has evaporated.
Once the water is absorbed by the rice or evaporates the required temp threshold can be reached and the switch pops.
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