5) An insurance company is selling a life insurance policy that will pay $100,000 if the purchaser dies within the next year. Imagine that there are two groups of people follows: Group 1 200 people Family history of cancer 1 in 50 (2%) chance of dying win a year Group 2 800 people No family history of cancer 1 in 200 (0.5%) chance of dying win a year a) If the insurance company were selling life insurance separately to each group, what would be the actuarially fair premium for each group? b) If the insurance company were offering life insurance to the entire group without knowing the family histories, what would be the actuarially fair premium for the group as a whole? c) What will happen to the insurance company if it tries to charge the actuarially fair premium to the group as a whole rather than to each group separately