Bubble Act of 1720

(historic insurance) With the help of a £600,000 bribe to King George I, The Bubble Act of 1720 (the Royal Exchange and London Assurance Corporation Act of 1719) is passed. The act forbids the formation of any joint-stock company not authorized by Royal Charter. As a result, only the Royal Exchange Assurance Corporation and the London Assurance Corporation have charters to write marine insurance. All other marine insurance is underwritten by wealthy individuals. The Act is repealed in 1825. See Lloyd’s of London.