TN 9 (05-90)
RS 02505.160 Commissions Earned by Life Insurance Agents - General
SSA Ruling 71-22
1. Agent Is An Employee
All original, renewal, and converted life insurance policy commissions earned by an agent who is employed by the insurance company, are earned in the month the selling agent does the last act required to entitle him to the commission.
All renewal commissions the agent anticipates receiving must be reported as earned in the month and year in which the sale was completed by the agent. If anticipated renewal commissions fail to materialize, corrections to the month and year in which they were counted are subject to administrative finality.
2. Agent Is Self-employed
All original and renewal commissions are earned in the year in which they are received by the agent. See RS 02505.125 regarding the SEI exclusion provision.
Accept the beneficiaries allegation of when commissions are earned.