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In the Hobbit story at the battle of five armies, a stone hit Bilbo in head and he faints away while wearing the One Ring. Since he was wearing the ring all the time during the battle, he remained invisible, until he woke up(and the battle was over).
Now, I wonder what would've happened if the strike would've killed Bilbo instead? Would he and the One Ring remain invisible or would they turn visible? What is the difference between fainting and sleeping and passing away?
In this answer it is indicated that the ring's effects are built on the characteristics of the wearer. So Bilbo's invisibility is an enhancement of his native traits/powers. If a more powerful entity were to wear the ring they would get powers proportional to their native strengths.
Given that the ring's powers seem to be tied to the living essence of the wearer, I would assume that if the wearer were to die the ring's effects would end. In other words, Bilbo would become visible.
Furthermore, I know of no evidence that the ring has effects on non-living things so once Bilbo ceased to be a living thing he would cease to be affected by the ring.
Given of what we know of the One Ring, if the wearer dies, the Ring tries to find the next possible passenger and hitches a ride. It did this again and again, tempting people to carry and/or use it, in an effort to find a powerful host and/or return to Sauron in Mordor.
In the event of Bilbo's demise it is likely the Ring would have become visible again after a time being dead or it would have eventually fallen off his decaying finger if he hadn't. The ring seemed to have a sort of malevolent intelligence trying to attract Sauron's minions to it.
It is likely the One Ring tried to escape Gollum but all of his years of owning the ring had broken his mind and he hid away from people rather than going to them. Once his mind was broken he wore it and used it only to attack potential prey.
Why the ring never tried to escape earlier during the centuries it was held by Gollum is a subject of debate. Perhaps Sauron's defeat after the loss of the ring in those early years meant he wasn't able to search for it like he does after Bilbo finds it.
It is possible the Ring may have have engineered Bilbo's fall to Gollum in an effort to be found and escape, though there is no way to prove this beyond a shadow of a doubt.
