Contract analysis

1. Late Notice (Article 7): Alleges 14-month, 7-day delay in noticing the Meridian Docks mass tort cluster (first reserve March 15, 2021; notice May 22, 2022)

2. IBNR Misallocation (Article 5): Alleges $22.3M in IBNR reserve strengthening was improperly allocated to TY 2022 instead of TY 2021

3. Follow-the-Fortunes (Article 11): Challenges $34.5M Veridian Financial Services E&O cluster settlement as not in the ordinary course

4. Premium Underreporting (Article 3): Alleges $6.8M underreported TY 2022 ceded earned premium; $2.856M premium underpayment [slide 7] QC&S Defenses — Late Notice (Ground 1)

Article 7 has a $1M individual claim reporting threshold; Meridian Docks claims were individually below this threshold until Q1 2022 reserve increases QC&S provided prompt notice once the aggregate reserve crossed the treaty reporting threshold — notice given May 22, 2022, via Broadreach NY law applies a prejudice-based standard: Pinnacle Atlantic must show actual prejudice from any delay Pinnacle Atlantic has not ar

Article 3 provides no termination right for premium reporting disputes; any shortfall results in offset or true-up Slide-scale premium adjustment mechanism (35%–52%) contemplates ongoing reconciliation [slide 11] Forum and Procedural Strategy — Arbitration vs. Litigation Treaty Article 22 provides for mandatory arbitration: three-member panel, ARIAS-U.S. Rules, seated in New York Hargrove, Fitch & Calloway asserts th