Sargonas also addresses LSI in this post:
Riot Sargonas (NA) - about a year ago
Totally fine to use it. We worked with LSI directly to ensure that their features fit within our 3rd party guidelines.
http://boards.na.leagueoflegends.com/en/c/player-behavior-moderation/5dmkJinG-3rd-party-applicationsmodifications-whats-allowed-and-what-isnt
Also see: https://support.riotgames.com/hc/en-us/articles/225266848-Third-Party-Applications
Exposing information that’s intentionally obfuscated (cooldowns or timers)
Taking actions on your behalf (botting or scripting)
Drawing conclusions for you (predicting enemy positions)
Altering your field of intelligence (zoomhacks or global ult alerts)
editing health bars does not fall within these category at all...
(otherwise turning on color blind mode would break ToS and ToU)