Michael is a college student, who owns a high-mileage 2008 Ford that has a current market value of $2.5million. The current replacement value of his clothes, television set, stereo, cell phone and other personal property in a rented apartment totals $900,000.00. He wears disposable contact lens, which cost $20,000.00 for a six month supply. He also has a waterbed in his rented apartment that has leaked in the past. An avid runner, Michael runs five miles daily in a nearby public park that has the reputation of being extremely dangerous because of drug dealers, numerous assaults and muggings, and drive-by shootings. Michael's parents both work to help him with his tuition.

For each of the following risks or loss exposures, identify the appropriate risk management technique that could have been used to deal with the exposure. Explain your answer.

1. Physical damage to the 2008 Ford because of collision with another car.

2. Liability lawsuit against Michael arising out of the negligent operation of his car.

3. Total loss of clothes, television, stereo and personal property because of a grease fire in the kitchen of his rented apartment.

4. Disappearance of one contact lens.

5. Waterbed leak that causes property damage to the apartment.

6. Physical assault on Michael by gang members who are dealing drugs in the park where he runs.

7. Loss of tuition assistance from Michael's father who is killed by a drunk driver in an auto accident.