What is the rule called that agents must follow when recommending changes for existing coverage in Florida?

The rule that agents must follow when recommending changes for existing coverage in Florida is known as the Florida Replacement Rule. This rule is designed to ensure that agents act in the best interests of the clients by providing them with information necessary to make informed decisions about their insurance coverage. When an agent recommends replacing an existing policy with a new one, this rule requires specific disclosures, including the consequences of the replacement and comparisons between the existing and new policies.

This guideline protects consumers by ensuring they are aware of the implications of replacing their insurance coverage, which may affect their policy benefits or costs. By adhering to the Florida Replacement Rule, agents help to promote transparency and safeguard clients from potential issues related to hasty or ill-informed decisions regarding their insurance needs. The rule emphasizes the importance of the agent's fiduciary responsibility to provide all relevant information and assist clients in making choices that reflect their best interests.