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FACTS:The appellant, Diana C. Avila, obtained an auto insurance policy from appellee Home State County Mutual Insurance Co., through appellee Alfredo J. Loya d/b/a Maverick Insurance Agency (the agency). The policy contained a provision calling for the automatic termination of the policy if the insured failed to pay the continuation premium when it was due. Although a renewal notice was sent, the continuation premium was not paid by its due date. Three days later, Avila was involved in an automobile accident. On that same day, Avila’s daughter tendered a payment premium check to the agency, the local agent of Home State. The check was accepted by the agency which gave the daughter a liability insurance card that showed the period of Avila’s coverage with the effective date as the date of the accident. When Avila submitted a claim regarding the accident, coverage was denied and Avila filed suit.
