SSA logo: link to Social Security Online home828. Full Time Life Insurance Salespersons

828.1 Are full time life insurance salespersons employees?

You are considered an employee if you:

  1. Meet the requirements in §826;

  2. Solicit life insurance or annuity contracts as your entire or principal business activity; and

  3. Work primarily for one life insurance company.

You should be provided with office space, stenographic help, telephone facilities, form, rate books, and advertising materials by the company or general agent.

828.2 Is the employment contract important?

Generally, the employment contract reflects the intention of you and the company regarding “full-time” work. How much time you spend working is not important. What is important is the contractual intent of full-time work. You may work regularly only a few hours a day yet still qualify as a full-time life insurance salesperson if your contract intends that you engage in full-time activity.

828.3 What does it mean to be a principal business activity?

A “principal business activity” takes the major part of a salesperson's working time and attention. This means that your efforts must be devoted primarily to the solicitation of life insurance or annuity contracts. Occasional or incidental sales of other types of insurance (e.g., surplus-line insurance) do not affect this requirement. On the other hand, if you are required to work substantially on selling applications for insurance contracts other than life insurance (e.g., health, accident, fire, etc.), you do not meet the requirement.