Jaclyn applied for a loan from Bank Bersama Bhd (BBB) and secured the loan with her life insurance policy of RM 1 million. BBB officer has made an investigation with regards to Jaclyn life policy insurance and found out that she failed to pay two months installments and has name her daughter Mei Mei as her beneficiary. Jaclyn also did not disclose to the insurance company that she had asthma at the time she signed the life insurance policy. Jaclyn promised the BBB officer that she will pay the premium of the monthly installments that she failed to pay, and BBB has priority to claim the insurance money if she died.

On another occasion, Jaclyn who is a guarantor to a loan made by her friends Ernie, has been sued by Bank Teguh Bhd (BTB) because Ernie has defaulted monthly payments for a year. However, Jaclyn discovered that BTB has extended the period of payment from 5 years to 7 years without informing Ernie.

Advise Jaclyn. Support your answer with legal provisions and decided cases.