N.Y. Soc. Serv. Law § 105

§ 105. Claim on insurance. If a person, who has received public\nassistance or care, shall die leaving insurance, and the estate of the\nassured is named as beneficiary, or no beneficiary is named, the social\nservices official shall be entitled to a preferred claim to be paid out\nof such insurance to the amount of the cost of such assistance and care,\nand for funeral expenses not to exceed two hundred fifty dollars. If\nthe insured leaves a surviving spouse or children under the age of\ntwenty-one years who are, or are liable to become, public charges, the\nsocial services official may, in his discretion, waive his claim to such\ninsurance or any part thereof to which he would otherwise be entitled.\n