10 Questions
What was one of the earliest methods of reducing risk for shippers?
Pooling the risk amongst all shippers
What did the Code of Hammurabi allow in terms of risk transfer?
Transfer of risk from merchants to moneylenders
What did Chinese merchants do to pool their risk of loss when moving cargo down rapid rivers?
Pooled their risk of loss
What did Phoenicians and Greeks allow shipowners and merchants to pledge as collateral for loans?
Either the ship or the cargo
What was a common concern for shippers using waterways as a means of transport?
Boats carrying cargo being destroyed in rapids
What was one of the earliest forms of insurance in regards to shipping goods?
Pooling of risk
What did the Code of Hammurabi allow in terms of risk transfer for merchants?
Transfer of risk from merchants to moneylenders
What was a common concern for shippers using waterways as a means of transport?
Destruction of cargo in rapids
What did Phoenicians and Greeks permit shipowners and merchants to pledge as collateral for loans?
The ship or the cargo
What was an early method used by Chinese merchants to reduce the risk of moving cargo down rapid rivers?
Pooling their risk of loss
Test your knowledge of the early forms of commercial insurance and risk reduction methods, particularly in relation to shipping goods and transportation by waterways.
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