Section 193E. No person, firm or corporation engaged in the business of financing the purchase of real or personal property or of lending money on the security of real or personal property shall require, as a condition precedent to such financing or lending, or as a condition precedent to the renewal or extension of any such loan or to the performance of any other act in connection with such financing or lending, that the purchaser or borrower, or his successors, shall negotiate through a particular insurance company, or insurance agent or broker, any policy of insurance or renewal thereof insuring such property. No such person, firm or corporation so engaged shall require any fee or the payment of any money for the substitution by the purchaser or borrower or his successors of a new insurance policy on the property upon termination of the existing policy, when such insurance policy is provided through an insurance company or insurance agent or broker licensed to transact business in the commonwealth.

Any person, firm or corporation, whether as principal, agent, officer or director, for himself or itself, or for another person, firm or corporation, violating the provisions of this section shall be fined not more than one hundred dollars. This section shall not prevent the exercise by any such person, firm, corporation, trustee, director, officer, agent or employee of its right to approve or disapprove of the insurance company selected to underwrite the insurance and of the policy including its terms and conditions.