All of the following practices would be prohibited EXCEPT?

The practice of projecting a dividend on a participating policy is permissible and, in fact, is a common and accepted practice in the insurance industry. Participating policies are designed to allow policyholders to share in the profits of the insurance company, which can lead to dividends being declared on these types of policies. When a company projects dividends, it is typically based on actuarial calculations and the anticipated performance of the company's investments and underwriting results.

This practice is distinguished from the other options, which involve misleading or dishonest conduct. Using a misleading name for a policy or misrepresenting the benefits, terms, or effects of loans on a policy are all deceptive actions that can harm consumers and violate insurance regulations. Misrepresentation undermines the trust that is essential in the insurance relationship and is strictly prohibited by regulatory bodies to protect consumers from being misled about their coverage and benefits.