The Knicks elected to take out an insurance policy on Larry Brown's contract last summer to protect the club in the event that Brown is forced to resign for medical reasons, a league source told the Daily News.

The language in the contract does not preclude Brown from taking another NBA or college job.

If the Knicks and Brown decide to part ways, one plausible scenario would be Brown replacing Mike Montgomery with Golden State. Brown and the Warriors' owner, Christopher Cohan, are friends who both live in East Hampton during the summer.