Do a search here and at the Mike Holt site. This has been discussed ad infinitum. You will find links to CPSC stuff, horror stories, etc.
With that you should be able to make a call you can believe in.
Some insurance companies will not insure a house with an FPE service. Previous is second hand info.
If the exposed romex is a violation, I would think it would need to be corrected, service change or not.
