6. (s points) James owns a 32-foot boat that he uses on weekends. His insurance agent informs him that large watercraft are excluded from his homeowners policy. As an insured, James foels his boat should be covered just like any other personal property be owns. a Explain to James the rationale for excluding certain types from property, such as boats, under the homeowners policy. . Give and explain two additional reasons why exclusions are present in insurance policies. 7. (10 points) Application Scenario Read the scenario below and then follow the instructions for the questions listed after the scenario. Newton and Olivia are married and own a 3-bedroom townhome in a large metropolitan city. They enjoy living in a family-friendly neighborhood with lots of young children. They have two daughters, ages 9 and 11, and their son, John, is a freshman at WMU who drives a new Chevy Camaro and lives in a fraternity house. On weekdays, Olivia runs a busy in-home doggie daycare and grooming service. Recently, Olivia purchased a customized Sprinter van to expand her services and income via mobile dog grooming on weekends. She keeps her grooming supplies inside the new van, which is parked on the street of their city neighborhood. Olivia maintains her client information on her tablet. Newton commutes over an hour cach way to his job as an accountant, first by car (a 2017 Subaru Outback), then via subway. After he gets off the train cach morning, he walks a few blocks to the office to save on cab fare - despite the narrow sidewalks and high crime in the area. Newton is never without his laptop and briefcase. Newton and Olivia also own a small market / liquor store on a lake upstate, near their vacation home. Identify 5 potential loss exposures faced by this family. For each potential loss exposure, identify at least one risk control or risk financing technique that could be used to treat the expoure. Be specific. Your responses should be numbered and organized. If you prefer, you may create a quick chart and number your responses inside of each column, such as what is shown below. Potential Exposure Treatment