We have a customer who is re-financing his mortgage with us. His existing mortgage is with a different bank at this time. The customer's property is in a flood zone. Because of the amount of the re-fi the flood insurance amount can decrease but the insurance agent is saying that the amount can not be decreased until renewal date.Is this correct?

I would have to plow through the flood insurance manual to be sure, but I am sure that is correct. You cannot decrease coverage mid-term in a policy - you can only increase it.