The answer to the last question is easy, genetic diversity. It is to a species' advantage to have as diverse a genetic code as it can get so that it can overcome changes in the physical or social environment and keep reproducing. A species that only reproduces through mitosis has likely the same genetic code in every single organism, and if something happens that would kill off one organism, it would kill all in the species.
Answer to the second question is yes.
The when and how are more difficult to ascertain. I don't remember the when exactly, but 1 bya (billion years ago) is a time that catches my memory. It's probably findable on a web search. I'm trying to remember my fossil record course in college and dates get blurry.