2 is whether petitioner failed to report commissions earned from prior sales of life insurance policies in the amount of $7,266. Some of the facts have been stipulated and are so found. The stipulation of facts and the exhibits received into evidence are incorporated herein. Petitioner resided in Jasper, Florida, at the time he filed his petition. Petitioner has been employed as a mechanic for Occidental Chemical Phosphate Co. for more than 22 years. In 1988, he was hired by Massachusetts Indemnity and Life Insurance Co. (MILICO) as an independent contractor sales representative to sell life insurance policies. Petitioner worked for MILICO from 1988 until the end of 1989. Karen Wilson (Ms. Wilson) is vice president of Primerica Life Insurance Co., formerly known as MILICO prior to a corporate name change effective July 1, 1992. In this capacity, Ms. Wilson executed an affidavit that was received into evidence wherein she detailed the compensation procedure for MILICO's independent contractor sales representatives: 3. Cash payments are made to sales representatives in two forms. First, upon receipt of an application for insurance, Primerica Life advances a portion of the commissions that are expected to become earned, assuming a policy is issued and remains in force. The money advanced on each application is a loan and, as such, is not reported as income for the sales representative unless and until the commission income actually becomes earned by virtue of the policyholder continuing to pay premiums.Page: Previous 1 2 3 4 5 6 Next
Last modified: May 25, 2011