Q48
When did insurance begin in Babylon?
A.
1750 BC
AnswerB.
1907 BC
C.
1971 BC
D.
2000 BC
Answer: Option A
Solution
Answer: Option A
Solution:
Insurance begin in Babylon in 1750 BC. Babylonians also practiced insurance in the form of a system, called the Code of Hammurabi, c. 1750 BC. It was practiced by the early Mediterranean sailing merchants. When a merchant takes a loan to fund his shipment, he would also pay an extra sum to the lender to would guarantee him to cancel the loan when the shipment is stolen or lost at sea.