Tough call whether to turn a breaker off or not. Personally, I just tell the agents to tell seller to get electrician ASAP.
BTW: Does anyone know or heard of if insurance companies have issues with FPEs? Do you tell your client they might?
First off, just because a switch "feels" hot doesn't mean there is something wrong with it. This is another use for that laser thermometer! If the switch was say, 150 degrees, I would say you have a problem.
Next up, the insurance issue. While at my wifes 20 year class reunion, I was talking to an Allstate agent. I asked her about aluminum wiring. She said "We don't insure any home with aluminum wiring or fuses". I also spoke with a State Farm agent a while back and they don't either. Of course, neither one of them had heard about FPE panels, but they know now!
I would change the wording of that from "to a know reliable panel" to "from a known problematic panel to a new panel'.
I would hate to say "known reliable" than have the replacement panel be defective and cause problems.
I would just say "recommend replacement of the service panel" and leave it at that.