An insurance contract entered into in violation of the law is unenforceable by, but enforceable against, the insurer. In an action against the insurer on the contract, the insurer is bound by the terms of the contract.
An insurance policy entered into in violation of the law is voidable by the policyholder who entered into the transaction without knowing it was illegal. The policyholder may avoid the contract by notice to the insurer.
Any person who assisted in the procurement of an illegal contract, and who knew or should have known the transaction was illegal, is liable to the insured for the full amount of a claim or loss payable under the contract, if the insurer does not pay it.