Frequently Asked Questions
Q: As a Colonial Life Insurance sales agent, can I buy insurance products such as life, AD&D coverage, and other products for my immediate family members?
A: Yes you can in most instances. Please check with your AIP Customer Service Rep for more details.
Q: As an independent contractor for Colonial Life Insurance, what costs and expenses can I deduct for my tax return?
A: Based on the tax reform legislation in place as of 2002, you can deduct Errors & Omissions premiums, health insurance premiums up to 70% in 2002 (will be 100% in 2003), the agent's portion on the buy up for LTD coverage, dental insurance premiums, and any costs related to offering AIP plans for any direct employees of the agent. Also, the medical discount plan, and prescription discount plans qualify as premiums at the 70% rate in 2002.
Q: What is the qualification for an agent to be eligible for long tem disability and long term care programs?
A: Effective every May 1, an eligible agent is who has completed one year of service and has produced $20,000.00 of new business premiums in the previous year.
Q: Are any of the AIP's coverages convertible?
A: Yes, many of the insurance programs are convertible. It is suggested that you contact the AIP department for more details.
Q: Can an agent buy AIP benefits for an employee(s) of an agent?
A: Yes, AIP can offer similar benefits to th employee(s). We suggest you contact AIP for further confirmation.
Q: Errors & Omissions coverage protects an agent from a lawsuit that can be filed by a client, vendor, insured relative of an insured for any cause. Does the Colonial sponsored Errors & Omissions plan protect the agent from these contingincies?
A: Yes, the Colonial sponored Errors & Omissions plan is the most comprehensive plan available.
Q: Why doesn’t AIP/Colonial offer a group medical insurance plan?
A: Group medical insurance plans typically require medical underwriting and the group itself can be rejected for coverage. If the group is accepted, subject to federal law, no individual within the group can be turned down for coverage and pre-existing condition limitations must be limited to a maximum of 12 months and waived if the insured had creditable prior coverage. Group medical insurance plans almost always require participation percentages and employer type contributions. Other challenges in establishing a group medical insurance plan for associations is the logistics of identifying a medical insurance carrier that provides a selection of providers in all states. The primary issue involved with an association group plan is adverse selection. Typically, the healthy individuals within the group can secure coverage with less expensive premiums elsewhere (either through an individual policy or on a spouse’s plan). This historically leaves only those who cannot secure coverage elsewhere enrolling in the plan and creating “adverse selection”.