Security authorized or required for payment of a judgment for periodic installments entered in accordance with this article must be in the form of an annuity contract, executed by a qualified insurer and approved by the superintendent of financial services pursuant to section five thousand thirty-nine of this article, and approved by the court.
§ 5032.Form of security.
Article 50-A. Periodic Payment of Judgments in Medical and Dental Malpractice Actions · Last amended 2011 · Last verified July 21, 2026
In one sentenceCPLR 5032 requires that any security posted to guarantee the periodic-installment portion of a malpractice judgment take the form of an annuity contract, issued by an insurer the state superintendent of financial services has qualified and approved by the court.
Full Text of CPLR 5032
Plain-English Summary
A judgment that pays out over years is only as good as the security behind it, and CPLR 5032 fixes that security to a single form: an annuity contract. Any security required or authorized under Article 50-A to back periodic installment payments has to come as an annuity, not some other financial instrument or general corporate guarantee.
That annuity contract has to run through channels the state has already screened. It must be executed by a qualified insurer, meaning an insurer the superintendent of financial services has determined meets the standards set out in CPLR 5039, and it also has to win the court's approval before it satisfies the security requirement. That double layer of oversight, a state regulatory qualification plus judicial sign-off, is meant to make sure the plaintiff's future payments rest on an insurer capable of paying them out for the full length of the stream, sometimes decades into the future.
Frequently Asked Questions
What form must security for a structured malpractice judgment take in New York?
CPLR 5032 requires the security to be an annuity contract, not any other type of financial instrument.
Who has to issue the annuity contract securing a malpractice judgment?
It must be executed by a qualified insurer, meaning one approved by the superintendent of financial services under CPLR 5039.
Does the court have any role in approving the annuity contract?
Yes. Beyond the insurer's qualification, the annuity contract must also be approved by the court before it satisfies the security requirement.
Why does New York require an annuity instead of another form of security?
An annuity contract from a state-qualified insurer is designed to guarantee the plaintiff's periodic payments get paid over the full term of the structured judgment.
Can a defendant post cash or a bond instead of an annuity contract under Article 50-A?
No. CPLR 5032 requires the security to take the form of an annuity contract from a qualified insurer approved by the court, not cash, a bond, or another instrument.
Amendment History
Add, L 1985, ch 294, § 9, eff July 1, 1985; amd, L 2011, ch 62, § 104 (Part A), eff Oct 3, 2011.
Source & verification. Provision text, History, and Advisory
Committee Notes are reproduced verbatim from the Consolidated Laws of New York.
Last verified July 21, 2026.
· Official source
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