STORY FROM: Reinsurance & Arbitration
2nd Circuit Adopts Exception to Functus Officio, Confirms Clarified Arbitration Award
November 30, 2018
NEW YORK — A federal appeals court has upheld confirmation of an arbitration award requiring General Re Life Corp. to pay up to $18 million in reinsurance proceeds to Lincoln National Life Insurance Co., finding the clarified award was consistent with the arbitrators’ intent and maintained the underlying resolution of the dispute.
In a Nov. 28 opinion, the 2nd Circuit U.S. Court of Appeals recognized an exception to the doctrine of functus officio. It held that where an arbitration award is unclear, the arbitrators retain their authority to clarify the award.
Gen Re reinsured various individual life insurance policies written ...
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