When I read the movie adaption in The Adventures of the Mask Omnibus, the villain Dorian with the Mask on him threw Peggy into a printing press killing her in a cartoon fashion with her face in a newspaper.
The reason we don't see Peggy in the rest of the film was that New Line cut out her death due to it would shock kids who watched the film, and why she death was shown in the comic adaptation since the movie was PG-13.
This is why she was in the cartoon version without mentioning her "Death."
Thoughts?