N.Y. Civil Practice Law & Rules § 5036: Adjustment of payments

§ 5036. Adjustment of payments. (a) If, at any time after entry of

judgment, a judgment creditor or successor in interest can establish

that the continued payment of the judgment in periodic installments will

impose a hardship, the court may, in its discretion, order that the

remaining payments or a portion thereof shall be made to the judgment

creditor in a lump sum. The court shall, before entering such an order,

find that: (i) unanticipated and substantial medical, dental or other

needs have arisen that warrant the payment of the remaining payments, or

a portion thereof, in a lump sum; (ii) ordering such a lump sum payment

would not impose an unreasonable financial burden on the judgment debtor

or debtors; (iii) ordering such a lump sum payment will accommodate the

future medical and other needs of the judgment creditor; and (iv)

ordering such a lump sum payment would further the interests of justice.

(b) If a lump sum payment is ordered by the court, such payment shall

be made by the medical malpractice insurance association created

pursuant to article fifty-five of the insurance law and shall not be the

obligation of the insurer providing the initial annuity contract. Such

insurer shall thereafter make all future payments due under its annuity

contract to the association, except that, if the lump sum payment

ordered by the court is a portion of the remaining periodic payments,

such insurer shall appropriately apportion future payments due under its

annuity contract between the association and the judgment creditor or

successor in interest. Such lump sum payment to be paid to the judgment

creditor or successor in interest by the association shall be calculated

on the basis of the present value of the annuity contract, which shall

be based on its cost at such time, for remaining periodic payments, or

portions thereof, that are converted into a lump sum payment. In no

event shall such lump sum payment be greater than the present value of

the annuity contract for the remaining periodic payments.