Question

select the correct answer.
lloyd’s of london was one of the first institutions to offer insurance to merchants and joint - trade companies. a major part of the insurance system involved people who agreed to take responsibility for the insured losses in return for a fee. what were these risk - takers known as?
a. joint - stock companies
b. investors
c. underwriters
d. merchants
e. capitalists

Explanation:

To solve this, we analyze each option:

• Option A: Joint - stock companies are entities that raise capital by issuing shares, not the risk - takers for insurance losses in this context.
• Option B: Investors generally put money into ventures for profit, not specifically to take on insurance - related losses for a fee.
• Option C: Underwriters in the insurance context (like at Lloyd's of London) are the ones who agree to take responsibility for insured losses in return for a fee (premium). This matches the description in the question.
• Option D: Merchants are involved in trading goods, not taking on insurance - related risks for a fee.
• Option E: Capitalists are individuals who own capital and invest it, not specifically in the role of taking on insurance losses as described.

Answer:

C. underwriters