(a) As used in this section (1) “bank holding company” has the same meaning as provided in section 36-419 , and (2) “lending institution” includes, but is not limited to, banks, savings and loan associations and credit unions.
(b) No person, partnership, association or corporation licensed under the provisions of section 38a-769 , which is owned or controlled, directly or indirectly, by a bank holding company or lending institution, shall negotiate any policy of insurance applicable to any real or personal property which is security for an extension of credit by any lending institution, if approval of the transaction is contingent on the purchase of said insurance.
(c) The terms of this section shall not be construed to apply to any person, partnership, association or corporation owned or controlled by a bank holding company or any lending institution engaged in the activity prohibited hereby on December 31, 1971.