a. Assuming that Abdel is otherwise healthy, do you think that the insurance company would issue a policy? Why or why not?

b. If Abdel makes a claim, what are the potential problems he has created for himself?

c. If you were the insurance agent, what could you do to minimize the risk that someone may provide you with fraudulent information?

Abdel is a self-employed convenience store owner. An insurance agent has approached him about his need for critical illness insurance. Abdel is very interested and would like to purchase as much protection as he can. Unfortunately, his family health history is very poor. His father had a heart attack at age 40 and his mother had a stroke in her mid-30s. Abdel understands that he may have difficulty qualifying for coverage based on his family health history. While filling out the application for critical illness insurance, Abdel tells the insurance agent that he was adopted and does not have any information on his biological parents that would indicate any family health concerns.