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Petitioner was not an officer of a corporation; moreover, as
discussed later in this opinion, we find that petitioner was not
an employee under the usual common-law rules. Thus, we must
consider whether he was a full-time life insurance salesman.
Respondent argues that petitioner was not a full-time life
insurance salesman because he did not sell life insurance,
whereas petitioners contend that petitioner did sell life
insurance because the policies he sold paid benefits in the event
of the death of the insured.
The regulations provide as follows:
An individual whose entire or principal business
activity is devoted to the solicitation of life
insurance or annuity contracts, or both, primarily for
one life insurance company is a full-time life
insurance salesman. * * * An individual who is
engaged in the general insurance business under a
contract or contracts of service which do not
contemplate that the individual’s principal business
activity will be the solicitation of life insurance or
annuity contracts, or both, for one company, or any
individual who devotes only part time to the
solicitation of life insurance contracts, including
annuity contracts, and is principally engaged in other
endeavors, is not a full-time life insurance salesman.
[Sec. 31.3121(d)-1(d)(3)(ii), Employment Tax Regs.3]
Neither section 3121(d)(3)(B) nor the regulation just quoted
defines “life insurance” or “life insurance contract”. However,
section 7702(a) provides that for purposes of the Internal
3 This regulation mirrors the legislative history of sec.
3121(d), which contains almost identical language. See S. Rept.
1669, 81st Cong., 2d Sess. (1950), 1950-2 C.B. 302, 347.
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