Section 7804. Approval of contract

(a) No viatical settlement company may
  use any agreement for a viatical settlement in this state unless  it  is
  in  writing  and has been filed with and approved by the superintendent.
  The superintendent shall disapprove a viatical settlement  form  if,  in
  the  superintendent's  discretion,  the contract or provisions contained
  therein are contrary to  the  interests  of  the  public,  or  otherwise
  misleading or unfair to the viator.
    (b)  The superintendent shall not approve any viatical settlement form
  unless it contains the  following  provision  or  provisions  which  the
  superintendent determines to be more favorable to the viator:
    (1) the viator may rescind the viatical settlement within fifteen days
  of the receipt of viatical settlement proceeds; and
    (2)  immediately  upon  receipt from the viator of documents to effect
  the transfer of the insurance policy, the  viatical  settlement  company
  shall  pay  the proceeds of the settlement to an escrow or trust account
  managed by a trustee or escrow agent in an insured New York  state  bank
  or  other bank approved by the superintendent, pending acknowledgment of
  the transfer by the issuer of the policy. The trustee  or  escrow  agent
  shall  transfer  the proceeds due to the viator immediately upon receipt
  of acknowledgment of the transfer by the insurer.