Please give proper explanation and Typed answer only.

Question 2 10 pts Assume you are selling life insurance plans for students completing their health economics class (assume all your target population is of the same age and are healthy). Assume also that one of the students, unknown to you, has a high-risk hobby as a deep sea diver in shark-infested oceans. What does this example illustrate, and what implications does it have to the cost of the insurance plans you are selling