New York Consolidated Laws, Insurance Law - ISC § 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.