Introduction to Reinsurance.pdf - Prince Lobel

Agreements to Arbitrate and
Confidential Proceedings (Cont.)
The vast majority of reinsurance treaties contain mandatory
arbitration clauses but many facultative agreements do not.
Most arbitrations are conducted pursuant to the Federal
Arbitration Act but state Acts may govern in some
instances.
Three-person arbitrations panels are commonly used.
So-called “honorable engagement” clauses are common
and relieve the panels from following the strict rules of
procedure or application of law.
Panels often do not issue reasoned awards.