When recommending changes for existing coverage in Florida, agents must follow what established procedure?

The Replacement Rule is the correct procedure for insurance agents in Florida when recommending changes to existing coverage. This rule is designed to protect policyholders from unnecessary replacement of their insurance policies, which could lead to gaps in coverage or increased costs. When an agent suggests a replacement, they must first determine whether the new policy serves a legitimate need, and they must provide the client with adequate information regarding the benefits, costs, and potential risks of switching policies.

By adhering to the Replacement Rule, agents ensure that clients fully understand the implications of their choices before making a decision, thus promoting informed consent. This rule also requires agents to provide a notice to the policyholder detailing the proposed changes, ensuring transparency in the agent-client relationship.

While other options might sound plausible, they do not specifically address the protocol established for navigating changes in coverage, emphasizing the importance of the Replacement Rule in protecting consumers in Florida’s insurance market.