On January 13, Lax made out a check to State Farm Insurance to pay for her automobile insurance, which had lapsed 62 days earlier. Unfortunately, she forgot to mail the check. On January 22, Lax was killed when trying to pass a truck. The check was found in the wreckage and taken to a State Farm agent who mailed it to the main office.

The main office, with knowledge of the accident, cashed the check. The beneficiaries argued that State Farm's conduct in cashing the check with knowledge of the accident constituted a waiver of its right to cancel the policy due to her failure to pay by the due date. Were the beneficiaries correct? Explain.

VanHulle v. State Farm, 254 N.E.2d 457 (IL).