Lynn,
I just confirmed behaviour described by Sumithar in the Toolset for C-MS/SQL and COBOL-DB2 z/OS using sample.ief's ADD_EMPLOYEE action block.
After setting the Initialize Unspecified Optional Fields to Null for each DBMS, inside CREATE new employee statement, I have deleted the SET address_line_2 TO import employee address_line_2 statement and generated the code.
Once there was no setting of the address_line_2 attribute, the code generated a INSERT NULL in that column.
Sumithar, would you mind double checking you are not setting the attribute inside the CREATE statement?