The option shown by the action of the insured to apply dividends to premium is called Accumulation at Interest.
What does Accumulation at Interest mean?
When an insured person utilizes accumulation at interest, their dividends are saved in an interest-bearing savings account.
They can utilize the dividends to cover expenses like insurance premiums, which is exactly what the insured did in this case by applying their dividends to their premium.
Find out more on investments and dividends at https://brainly.com/question/1199303.
#SPJ4
