Is Workers' Compensation Coverage Required?
Workers' Compensation coverage is not required for certain Licensed Insurance Agents or Brokers if they meet all of the following requirements:
- has income based upon sales and not on the number of hours worked;
- is not a life insurance agent receiving a training allowance subsidy;
- has entered into a written contract that outlines the services that they are to perform – this contract may be terminated by either party at any time upon notice given to the other party;
- can work any hours they choose;
- incur their own expenses including automobile, travel and entertainment (office facilities and supplies may be provided by real estate firm); and
- shall NOT be treated as an employee for State and Federal tax purposes (other than FICA that is required for full time life insurance agents).