Which of the following practices is NOT prohibited?

Denial of a claim after an investigation is not prohibited because insurance companies have a legal obligation to investigate claims thoroughly before making a decision to deny them. As part of the claims process, insurers must evaluate the legitimacy of a claim, and if the investigation reveals that the claim does not meet the policy's criteria or is otherwise invalid, the denial is justified. This practice ensures that claims are assessed fairly and that insurers adhere to the contractual terms of their policies.

In contrast, discrimination based on national origin, refusing to insure an applicant solely due to military status, and permitting rate distinctions based on disability are all prohibited practices under various regulations aimed at promoting fairness and equality in insurance. Therefore, these practices are considered discriminatory and unjustified, while proper denial of claims, having undergone due diligence and investigation, aligns with lawful underwriting and claims processing practices.