Sam Goldwyn, one of the founders of Metro-Goldwyn-Meyer (MGM), was reported to have once said, “Your oral contract ain't worth the paper it's printed on.” It's a lesson that should be hung on the wall of every insurance agent and broker. Although binders evidencing an insurance policy can be oral, insurance can never be an oral contract.
Related: Read “Worst of the Best“
Any contract an insurance agent or broker enters into should be written. The agent who enters into an oral contract will find himself facing someone like old Sam Goldwyn telling him that there is no chance of enforcing the oral agreement.
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