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.
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