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No, it is not proper. If your Card is cancelled and you lose the accumulated reward points, the action would be considered a deceptive and and unfair practice. You can sue AMEX for the recovery of the points and also file complaint against AMEX with Consumer Financial Protection Bureau and Federal Trade Commission for this deceptive and unfair practice.
You can obtain the forms to file the lawsuit at your local Justice of the Peace Court, in the Clerk's office.