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The 193rd General Court of the Commonwealth of Massachusetts

Section 3: Solicitation of business; inspection of records; compensation of agents

Section 3. No insurance company shall direct any agent or other producer not to solicit business through the association; no insurance agent shall direct any other agent in his employ or any broker or other producer not to solicit business through the association; and no agent, broker or other producer shall be penalized in any way by an insurance company or employer producer for submitting applications to the association.

No insurance agent or broker licensed to sell basic property insurance shall be allowed to refuse a request for inspection from an eligible applicant for basic property insurance unless such applicant is:

(a) Then indebted to any agent, broker or company for coverage requested;

(b) Then unwilling to make satisfactory payment arrangements for the coverage requested.

Agents and brokers submitting applications to the association shall be compensated by commissions upon the original issuance of coverage, each installment payment if any, and each renewal thereof and shall be entitled to no other compensation.

Commissions to licensed insurance agents and brokers from the association established in accordance with the provisions of this chapter shall be set by the commissioner from time to time at such percentage of the average commission rate customarily paid by those insurance companies who customarily compensate agents by commissions, as the commissioner, after appropriate hearing, shall find to be sufficiently attractive to encourage agents and brokers to actively seek out risks and to assist property owners to obtain coverage while at the same time leaving a further incentive to the agent or broker to place such business through his customary markets when he finds that it is practicable.