Or a life insurance corporation seeing that you have predisposition for heart disease, and refusing to provide services to you.
I don't get your example. It's a private company and has a right to decide what risks it should take...Unless there is a government control over life insurance rules - why would an insurance company risk losing money? It's the same as charging an 80 year old man higher premium than a 20 year old.
If we have perfect (or near-perfect) knowledge, what would insurers do? Well, they'd charge you for exactly how much you're going to cost, plus some administrative costs, plus some extra. At that point, everyone's better off not having insurance.
That's exactly what I meant, government should be that entity that helps those on the rough end of the stick. Riding on the misinformation of life insurance company is not a solution either
But this is the very and only concept of insurance: misinformation on misfortune...