1. Harold and Amy Brown, Pullman residents, purchased a boat that they keep at a marina at Lake Coeur DAlene. They purchased physical damage insurance on the boat. The physical damage insurance includes a $500 deductible. Harold and Amy keep a fire extinguisher on the boat, as well as life jackets and a first aid kit. As Harold and Amy do not have much boating experience, they dont use the boat if its windy or there is a chance of bad weather. Which of the following risk treatment measures (retention, transfer, risk control, or avoidance) do each of the following illustrate with regard to the loss exposures arising from owning and operating the boat? (half-point each)

a. Not using the boat when it is windy or there is a chance of bad weather.

b. Keeping life jackets, a fire extinguisher, and a first aid kit on the boat.

c. The $500 deductible on the physical damage coverage.

d. Purchasing physical damage insurance on the boat.