RIBO Exam (Ch 1-4)|101 Questions with 100% Correct Answers | Verified

Insured - ️️A person or entity who purchases an insurance policy. 1st party Insurer - ️️The insurance company who issues an insurance policy. 2nd party Lessor - ️️a person or entity that grants a lease (bank) Lessee - ️️A person who purchases the lease Mortgagee - ️️A person or entity that provides a loan (bank) Mortgagor - ️️A person who borrows money Chinese Shippers - ️️-Around 2000 BCE -First group to demonstrate "risk mitigation" -They used to separate boats for each good -Implemented risk mitigation by scattering goods on each boat allowing to mitigate risk in case of loss Middle Age Peasants - ️️- First to implement a "communal pot" - First to implement "losses of the few shared by the many" The Great London Fire - ️️-Occurred in 1666 -Renters were forced to repay landlords for damage of fire to homes -Insurance business was created to avoid total loss for landlords and debtors jail for renters