1. what kind of stupid juvenile crap is this?
2. you will be paying full price for the phone, which isn't $499, more like $699
3. why would you ask an Apple rep about a "1 off" scenario that has nothing to do with their company or any policy they make, it is ATT that you have to deal with not Apple
4. this is an old scam people use to do to claim phones off of insurance, over 10 years old now. and carriers know the scheme
5. it is fraud and it is against the law, why would you risk possible jail time over a few hundred bucks, seems like a dumb thing to do, if you're going to commit fraud then do it for something worthwhile like 10mil, not to save $200
if you think about it, a lost phone is pretty much a stolen phone eventually, if you leave the phone at a public place and then go back to find it, and check the lost and found of the place and it isn't there and the place you lost it and can't find it, then it is safe to say someone has taken it and not planning to give it back, which means it is stolen. in which case you would have to file a police report, since the item is now stolen
now unless you want to walk into an ATT store and tell them you lost it in your own house, or in your car, in which case the guy behind the counter would probably wonder why you aren't looking for it instead of standing there trying to convince him to sell you another one.