Is Disability and Paid Family Leave Benefits Coverage Required?
Disability and Paid Family Leave benefits coverage is not required for a licensed insurance agent if:
- Substantially all compensation for services provided is directly related to sales or other output rather than the number of hours worked;
- The agent is not a life insurance agent receiving a training allowance subsidy described in section 4228 of the Insurance Law;
- Services are performed pursuant to a written contract between the agent and the party for whom services are performed;
- The written contract contains these provisions:
- The agent is an independent contractor;
- The agent will be paid a commission on their gross sales, that shall be directly related to sales or other output, with no relation to hours worked, and shall not be treated as an employee for tax purposes;
- The agent may work any hours they choose;
- The agent may work out of a personal office or home, or out of the office of the person for whom services are performed;
- The person for whom services are performed may provide office facilities, clerical support, and supplies for agent's use, but the agent must bear any other expenses including travel and entertainment expenses;
- Both parties must comply with all requirements of Article-21 of the Insurance Law, but compliance shall not affect the agent's status as an independent contractor;
- The contract may be terminated by either party at any time with notice given to the other.
For a complete description of the written contract requirements, refer to WCL § 201(6)(A).