N.Y. Insurance Law § 7818: Nonconforming contracts

§ 7818. Nonconforming contracts. (a) Except as otherwise specifically

provided in this chapter, any life settlement contract subject to this

chapter that is in violation of any of the provisions of this chapter

shall be valid and binding upon the life settlement provider, but in all

respects in which the contract's provisions are in violation of the

requirements or prohibitions of this chapter it shall be enforceable as

if it conformed with such requirements or prohibitions.

(b) In any action to recover under the provisions of any life

settlement contract that the superintendent is authorized by this

chapter to approve, if in the superintendent's opinion the provisions of

this chapter are more favorable to owners, the court shall enforce such

contract as if its provisions were the same as those specified in this

chapter unless the court finds that the actual provisions of the

contract were more favorable to owners at the date when the contract was

entered into.