He may be W2 and entitled to Unemployment if he were laid off and not working. However, that would not be the case. He would still be working as a self employed agent selling Med Supp. Of course he could lie and say he wasn't self employed but if he continues to sell, it would be very possible that he would be caught as the companies he represents will furnish him a 1099 at the end of the year. The other option, if he wants to draw would be to shut the agency down at the same time he is terminated.
