Right, and they can still contact apple support via chat or call to add apple care if they are within 1 year in the US. In this case the phone must be functional and connect to either a WiFi network or a cellular plan so they (apple) can run basic diagnostics. This is an option as there are not apple stores in a handful of US states and territories. My best guess is that they do ask the consumer if there is physical damage & it’s up to the consumer to either be truthful or lie. Im sure lying somehow breaks the TOC for applecare+ if apple were to find out.

You may be able to do a chat/call with apple support in your country to have them add the apple care. When you do it online/over the phone they just run diagnostics to verify internally everything else is working. In the US, you have 1 year from the date of purchase to add apple care, also i think you have 60, maybe 90 days to do it yourself in setting > general > about. However they may ask is there physical damage to the exterior, so you may need to lie about that…