FACTS
Eulogio applied for a 20 year insurance policy with Insular Life. Violeta, petitioner, was named as the primary beneficiary. However, Eulogio failed to pay the premium therefore, the insurance lapsed and became void.
On September 17, 1998, Eulogio applied for reinstatement and paid the overdue premium and interest to Malaluan, agent. On the same day, just hours after filing his Application died of cardio-respiratory arrest secondary to electrocution. The next day, Without knowing of Eulogio’s death, Malaluan forwarded to Insular Life Eulogio’s second Application for Reinstatement of Policy No. 9011992 and P17,500.00 deposit for approval.