An insurance contract is one of utmost good faith, i.e. both parties are under the obligation to make full disclosure to the other of any information that may be relevant. From what Slapped has said, the EC member has made an illegitimate claim and made a number of misrepresentations, not least of all purporting to make a claim on behalf of the OC they knew to have no basis.
In relation to the EC member’s actions, even if they had been conducting EC business, slapping someone is outside the ambit of anything they would be authorised to do. You can be charged with assault for doing that.
The EC is now asking the OC to ratify the claim (that’s the word you are looking for).
What I would do is remind the owners voting that if they ratify what has occurred then they are party to the illegitimate claim/possible fraud, and as such in the event the insurance company seeks to get that money back (highly likely) then they may all be liable to the insurance company severally as being party to that misfeasance. So if the EC member is unable to pay up, the insurance company will come after them.
Personally I think the circumstances are appalling, and I would probably contact the insurance company, but that is just me. As for the EC member, if they are still on the EC, they shouldn’t be. I would also be asking questions about corporate governance generally, as the other EC members were aware of and supported what the EC member was doing, and any advice the strata manager has given.