All of the following practices would be prohibited EXCEPT?

The correct answer is the option that pertains to projecting a dividend on a participating policy. This practice is allowed because participating policies are designed to share surplus profits with policyholders in the form of dividends. Insurers can project dividends based on past performance, even if future results may vary. It is important to ensure that any projections made are reasonable and based on actual experiences.

In contrast, the other options involve misrepresentations or misleading practices that could deceive consumers or violate regulatory standards. Misrepresentation of a loan's effects, using misleading names for policies, or misrepresenting benefits or terms could mislead insured individuals about what they are entitled to or the nature of the product they are considering. Such practices are prohibited to maintain the integrity of the insurance market and ensure that consumers are fully informed.