Be it enacted by the Senate and House of Representatives
in General Court assembled, and by the authority of the same,
Section 174E of chapter 175 of the General Laws, as appearing in the 1986 Official Edition, is hereby amended by striking out the first and second paragraphs and inserting in place thereof the following two paragraphs:-
No such license as described in sections one hundred and sixty-three, one hundred and sixty-six, one hundred and sixty-seven, one hundred and sixty-eight, one hundred and seventy-two A, one hundred and seventy-three and one hundred and seventy-four shall be issued to any bank or mortgage company or any officer, agent, representative or employee of any such bank or mortgage company, unless such bank or mortgage company held such license or licenses as described herein prior to October eleventh, nineteen hundred and seventy-two. Nothing contained herein shall be construed to prohibit a licensed insurance agent or broker from serving as a director or advisory board member of any such bank or mortgage company; nor shall this prohibition apply to a licensed insurance agent or broker who is also an officer, agent, representative or employee of such bank or mortgage company when the insurance business of such agent or broker is in no material way connected with such bank or mortgage company or their borrowers. For the purposes of this section, the insurance business of such agent or broker shall be presumed to be materially connected with such bank or mortgage company or their borrowers when ten percentum or more of the aggregate net commissions received by such insurance agent or broker during the term of any prior license or renewal, or which would probably be received during the term of a new license thereunder, resulted or would result from insurance written on behalf of such bank or mortgage company, or any of their borrowers.
Nothing contained herein shall be construed to prohibit any such bank or mortgage company from making loans to or otherwise financing a licensed insurance broker, agent or agency and, in connection therewith taking a security interest in the assets of such broker, agent or agency, and nothing in this section shall prevent any such bank or mortgage company from acquiring any assets of such broker, agent or agency in satisfaction of any debt previously contracted or that shall be obtained by sale or foreclosure of any security held by such bank or mortgage company; provided, however, that if the assets so obtained are prohibited by this section, such bank or mortgage company shall dispose of such assets within one year of the date it acquired title to the same, unless the commissioner shall extend the time for such disposition for the reason that the interests of such bank or mortgage company or debtor will suffer materially by a forced sale of such property. In the event the commissioner grants such an extension, he shall make a record of such extension and, in that event, the sale of said property may be made at any time before the expiration of the time of such extension. The commissioner may, at any time, for cause shown and after hearing, revoke any agent's or broker's license or suspend it for a period not exceeding the unexpired term thereof, and may for causes shown and after a hearing, revoke the license while so suspended, if he finds that the holder of such license is violating this section.