The 1st thing I though of was "Are you sure there is even coverage on it now?" If the agent knew the deceased, he may have already canceled the insurance, or the length of the term could have expired and without a renewal, it may have just dropped. It could have also auto renewed and the current policy will be in effect until the end of this term, which means it probably has already been paid for.

I suspect every insurance company has its own process and its own policy regarding the death of the owner, the best info you will get is to get it from the insurance company. If you have the policy, it might actually tell you inside of it what happens and what the policy is. Making assumptions about an insurance company policies and procedures is not a good idea.