The Inhabitants of Rhodes adopted a Practice, where- by, if Some Goods were lost due to Jettisoning, during Distress, the Owners of Goods (even those who lost Nothing) would bear the Losses in Some Proportion. Which Phenomenon is illustrated, in this Scenario?
A)Capitalism
B)Socialism
C)Mutual Insurance
D)Tyranny

Question

Quizplus · Accepted Answer

This scenario illustrates the concept of mutual insurance, where members of a group share the risks and financial burdens associated with losses, ensuring that no single member bears the full brunt of a loss. This practice of sharing losses proportionally among all owners, regardless of individual loss, is a form of collective risk management.

The Inhabitants of Rhodes Adopted a Practice, Where- By, If