Any of the following may be an unfair claims practice EXCEPT?

Refusing to pay persons bringing false or fraudulent claims is not considered an unfair claims practice because insurance companies have the right and obligation to protect themselves against fraudulent activities. An insurer must ensure that claims made are legitimate and adhere to the terms of the policy. When a claim is proven to be false or fraudulent, the insurance company is justified in denying that claim to prevent potential losses and uphold the integrity of the insurance process.

On the other hand, the other options listed represent unfair practices because they violate the principles of fair treatment and transparency in handling insurance claims. Denying claims based on pre-existing conditions may improperly limit coverage when policy terms do not justly support such exclusions. Failing to respond to claims in a timely manner hinders the policyholder's ability to receive benefits to which they are entitled. Misrepresenting policy provisions can lead to misunderstandings and unfair denial of claims, which is detrimental to consumers. Thus, the refusal to pay fraudulent claims is consistent with ethical practice in the industry, making it the exception among the choices provided.