Problem
James is a college senior who is majoring in Risk Management and Insurance. He owns a high-mileage 2001 Honda Civic that has a market value of $4,000. The current replacement value of his clothes, television sets, stereo set, cell phone, and other property in a rented apartment totals $9,000. An avid runner, James runs 5 miles daily in a nearby public park that has the reputation of being very dangerous because of drug dealers, numerous assaults and muggings, and drive-by shootings.
Use this scenario to answer Questions.
I. For the following risk or loss exposure, identify an appropriate risk management technique that could have been used to deal with the exposure. Explain your answer. Liability lawsuit against James arising out of negligent operation of his car.
II. For the following risk or loss exposure, identify an appropriate risk management technique that could have been used to deal with the exposure. Explain your answer. Waterbed leak that causes property damage to the apartment.
III. For the following risk or loss exposure, identify an appropriate risk management technique that could have been used to deal with the exposure. Explain your answer. Physical assault on James by gang members who are dealing drugs in the park where he runs.