When Lloyd's of London offered to provide insurance to merchant ships in the eighteenth century, Lloyd's was:
A) exhibiting risk-averse behavior.
B) less sensitive to risk than those who requested insurance.
C) attempting to decrease its exposure to risk.
D) not very rational in its behavior.

Question

Quizplus · Accepted Answer

Lloyd's of London was willing to take on the risk of insuring merchant ships, indicating they were less sensitive to risk compared to the merchants who sought insurance to mitigate their own risk exposure.

When Lloyd's of London Offered to Provide Insurance to Merchant