Chap. 528.                         397
Chap. 528.   An Act further regulating the placement of fire
INSURANCE IN URBAN AREAS OF THE COMMONWEALTH.
Whereas, The deferred operation of this act would tend to defeat its p'ufpose, which is to provide forthwith for the placement of fire insurance in certain urban areas of the commonwealth, therefore it is hereby declared to be an emergency law, necessary for the immediate preservation of the public convenience and safety.
Be it enacted, etc., as follows:
Section 1. Section 1 of chapter 175C of the General Laws, as appearing in section 1 of chapter 731 of the acts of 1968, is hereby amended by striking out the definition of "Basic property insurance" and inserting in place thereof the following definition: —
"Basic property insurance", insurance against direct loss to property as defined and limited in the standard fire policy and extended coverage endorsement thereon, filed with and accepted by the commissioner, and insurance against direct loss to such property from the perils of vandalism and malicious mischief, and such other coverages as the commissioner after public hearing shall determine or the Secretary of the United States Department of Housing and Urban Development shall designate by rule made in accordance with the provisions of the Urban Property Protection and Reinsurance Act of 1968 (Public Law 90-448) but shall not include insurance on automobile or manufacturing risks except such classes of manufacturing risks as may, after proper hearing, be designated by the commissioner.
Section 2. Section 2 of said chapter 175C, as so appearing, is hereby amended by striking out subsection 1 and inserting in place thereof the following subsection: —
(1) Each insurance company licensed to provide all or any part of the coverage provided for as part of basic property insurance, as defined in section one, shall participate in the plan of operation as a condition precedent to obtaining or maintaining authority to sell all or any part of such coverage in the commonwealth.
Section 3. Section 3 of said chapter 175C, as so appearing, is hereby amended by adding the following paragraph: —
Commissions to licensed insurance agents and brokers from the facility and from any joint underwriting and reinsurance 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 in urban areas and to assist property owners therein 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 that is practicable.
Section 4. The second paragraph of section 4 of said chapter 175C, as so appearing, is hereby amended by striking out, in line 16, the words "or manufacturing risks" and inserting in place thereof the words: — and manufacturing risks excluded from the plan, — and by striking out the seventh sentence and inserting in place thereof the following sen-
398                    Acts, 1969. —