As far as I can remember it was a requirement for liquid fuel fired heating equipment, we use to have to install them on all oil type furnaces and space heaters to shutdown the fuel pump in an event the line to the burner ruptured, most of these pumps were a oil gear positive pressure type and if the burner orifice was to plug the pump could build up pressure and rupture the fuel line or blow apart the compression fittings used in some furnaces, the idea was to have a way to shut it down remotely, they also had to have a fire red cover marked "EMG FUEL SHUTOFF"
This went away with the advent of the newer safety gas valves on gas type furnaces (Propane/Natural) which shut off the gas flow if the pilot light goes out, or the igniter doesn't light.
We also had around here a few inspectors who tried to continue this requirement for gas furnaces, but eventually the state over ruled them.