New York Laws
Article 50-A - Periodic Payment of Judgments in Medical and Dental Malpractice Actions
5036 - Adjustment of Payments.

(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.

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