New York Laws
Article 78 - Life Settlements
7815 - Stranger-Originated Life Insurance.

(1) the purchase of life insurance with resources or guarantees from
or through a person that, at the time of policy initiation, could not
lawfully initiate the policy;
(2) an arrangement or other agreement to transfer the ownership of the
policy or the policy benefits to another person; or
(3) a trust or similar arrangement that is used, directly or
indirectly, for the purpose of purchasing one or more policies for the
intended benefit of another person in a manner that violates the
insurable interest laws of this state.
(b) Stranger-originated life insurance arrangements do not include
lawful life settlement contracts as permitted by this article or those
practices set forth in paragraph three of subsection (k) of section
seven thousand eight hundred two of this article, provided that such
contracts or practices are not for the purpose of evading regulation
under this article.
(c) No person shall directly or indirectly engage in any act, practice
or arrangement that constitutes stranger-originated life insurance.
(d) The failure to follow the provision of subsection (c) of this
section shall be a defined violation under article twenty-four of this
chapter.