Connie and Michael Fikowski owned Saskatchewan River Bungalows Ltd (SRB). That company purchased an insurance policy on Michael's life and named Connie as the beneficiary. The policy was purchased from Maritime Life Assurance Co (MLA). The policy was renewable each year according to the terms of the insurance contract. The relevant terms stated:

The obligations contained in this contract are conditional upon payment of the premiums as they become due.

Each premium is payable on or before July 26 at the head office of the Company in Halifax, Nova Scotia.

If any premium remains unpaid at the end of the grace period, this policy automatically lapses (terminates because of non-payment of premiums).

Near the end of the first year of coverage, in late June, SRB mailed a cheque and a renewal request to MLA's head office in Halifax. In the normal course of events, that letter would have reached Halifax within five business days. In fact, for reasons unknown, the letter has never been received by the insurance company. The Fikowskis did not realize that their letter had gone missing until nearly a year later. At that point, they presented a new cheque to the insurance company and requested reinstatement of their policy. By that time, however, Michael had been diagnosed with cancer, so the insurance company refused to accept the payment. Michael recently died and the insurance company denies any liability. Connie Fikowski, in contrast, insists that she is entitled to a benefit under the policy. Discuss the parties' dispute.