SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF NEW YORK COMMERCIAL DIVISION
QUORUM CASUALTY & SURETY COMPANY,
Plaintiff/Claimant,
— against —
PINNACLE ATLANTIC REINSURANCE LTD.,
Defendant/Respondent.
Index No. ___ (To Be Assigned)
PLAINTIFF/CLAIMANT QUORUM CASUALTY & SURETY COMPANY'S FIRST SET OF REQUESTS FOR PRODUCTION OF DOCUMENTS TO DEFENDANT/RESPONDENT PINNACLE ATLANTIC REINSURANCE LTD.
Treaty at Issue: Treaty No. PA-QCS-2019-EXL-0044
Prepared by: Yuki Nakamura, Calderwood & Harkness LLP, One Liberty Plaza, 55th Floor, New York, NY 10006. C&H Matter No. 1025-00005. Attorneys for Plaintiff/Claimant Quorum Casualty & Surety Company: Douglas Carmichael (Responsible Partner), Francesca Morano (Billing Partner), Jeffrey Park (Lead Associate), Yuki Nakamura (Working Associate). Directed to: Pinnacle Atlantic Reinsurance Ltd., through its counsel Hargrove, Fitch & Calloway LLP, 51 West 52nd Street, 40th Floor, New York, NY 10019, Attention: Nathaniel R. Calloway III.
PRELIMINARY STATEMENT
Plaintiff/Claimant Quorum Casualty & Surety Company ("QC&S"), a New York-domiciled stock property and casualty insurer (NAIC No. 24891), by and through its attorneys, Calderwood & Harkness LLP, hereby serves this First Set of Requests for Production of Documents ("Requests") upon Defendant/Respondent Pinnacle Atlantic Reinsurance Ltd. ("Pinnacle Atlantic" or "PARL"), a Bermuda Class 4 insurer registered with the Bermuda Monetary Authority under Registration No. BMA-4R-2008-0331.
These Requests arise from a dispute concerning the aggregate excess-of-loss reinsurance treaty identified as Treaty No. PA-QCS-2019-EXL-0044, effective July 1, 2019, as extended (the "Treaty"), under which Pinnacle Atlantic serves as reinsurer and QC&S serves as cedent. On February 14, 2026, the law firm of Hargrove, Fitch & Calloway LLP, acting on behalf of Pinnacle Atlantic, transmitted a pre-suit demand letter to QC&S (the "Demand Letter") demanding the return of Seventy-Eight Million Four Hundred Thousand Dollars ($78,400,000) in reinsurance recoverables previously paid to QC&S, together with Twelve Million Six Hundred Thousand Dollars ($12,600,000) in accrued interest, for a total demand of Ninety-One Million Dollars ($91,000,000).
The Demand Letter asserts four grounds for Pinnacle Atlantic's purported entitlement to recovery:
(1) Late Notice (Article 7): Pinnacle Atlantic contends that QC&S failed to provide timely notice of the Meridian Docks mass tort claim cluster, allegedly in breach of Article 7 of the Treaty, and that such late notice excuses Pinnacle Atlantic from liability for the ceded losses attributable to those claims;
(2) IBNR Misallocation (Article 5): Pinnacle Atlantic contends that QC&S improperly allocated $22,300,000 in incurred but not reported ("IBNR") reserve development to Treaty Year 2022 rather than Treaty Year 2021, thereby inflating the ceded losses billable under TY 2022;
(3) Follow-the-Fortunes/Settlements Challenge (Article 11): Pinnacle Atlantic challenges QC&S's settlement of the Veridian Financial Services errors and omissions claim cluster for a combined $34,500,000, asserting that the settlement was at "inflated amounts" and lacked a "meaningful litigation exposure analysis," and that the follow-the-fortunes doctrine under Article 11 of the Treaty does not require Pinnacle Atlantic to follow such settlement; and
(4) Ceded Earned Premium Underreporting (Article 3): Pinnacle Atlantic contends that QC&S underreported ceded earned premium for TY 2022 by $6,800,000, resulting in a treaty premium underpayment of $2,856,000 (calculated at the 42% provisional rate).
QC&S vigorously disputes each of Pinnacle Atlantic's contentions. QC&S provided timely notice of the Meridian Docks Claims in accordance with the terms of Article 7 and the parties' established course of dealing. The IBNR reserve allocation to TY 2022 was actuarially sound and fully consistent with the definition of "losses incurred" set forth in Article 5.2. The Veridian E&O settlement was negotiated in good faith, within the range of reasonable outcomes, and in the ordinary course of QC&S's claims-handling practices, entitling QC&S to the protections of the follow-the-fortunes doctrine codified in Article 11. And QC&S's premium reporting for TY 2022 accurately reflected the ceded earned premium in accordance with Article 3, properly excluding run-off portfolio transfer premiums as provided under Article 3.4.
These Requests are served pursuant to Sections 3120 and 3122 of the New York Civil Practice Law and Rules ("CPLR"). In the alternative, to the extent this dispute is referred to arbitration under Treaty Article 22, which provides for a three-member arbitration panel seated in New York, New York, under the rules of ARIAS-U.S., these Requests are served pursuant to the discovery procedures applicable under Article 22 and ARIAS-U.S. Arbitration Rules. Nothing in the service of these Requests shall be deemed to constitute a waiver of QC&S's position that this dispute is subject to the mandatory arbitration provision set forth in Article 22 of the Treaty.
QC&S reserves the right to serve additional requests for production of documents, interrogatories, and requests for admission, and to take depositions as permitted under applicable procedural rules.
DEFINITIONS
As used in these Requests, the following terms shall have the meanings set forth below. These definitions shall apply regardless of whether the defined term appears in the singular or plural, uppercase or lowercase, or any variation thereof.
A. "Treaty" or "2019 Treaty" shall mean the Aggregate Excess-of-Loss Reinsurance Treaty No. PA-QCS-2019-EXL-0044 between Quorum Casualty & Surety Company, as cedent, and Pinnacle Atlantic Reinsurance Ltd., as reinsurer, effective July 1, 2019, including all endorsements, amendments, addenda, side letters, cover notes, placing slips, and extensions through and including the second one-year extension period ending June 30, 2026, and including the non-renewal notice dated October 1, 2025.
B. "Treaty Year" or "TY" shall mean each annual period running from July 1 to June 30, as defined under the Treaty. The relevant Treaty Years for purposes of this dispute are:
(i) TY 2020: July 1, 2019 through June 30, 2020;
(ii) TY 2021: July 1, 2020 through June 30, 2021;
(iii) TY 2022: July 1, 2022 through June 30, 2023; and
(iv) TY 2023: July 1, 2023 through June 30, 2024.
For the avoidance of doubt, TY 2022 and TY 2023 are the primary Treaty Years in dispute, although documents relating to all Treaty Years are relevant and sought herein.
C. "Document" or "Documents" shall mean, in the broadest sense permitted under the CPLR and applicable law, all writings, recordings, and electronically stored information ("ESI") of every kind and description, whether printed, typed, handwritten, recorded, filmed, taped, or stored electronically, including without limitation: correspondence, letters, emails, memoranda, reports, analyses, spreadsheets, databases, presentations, board minutes, committee minutes, handwritten notes, voicemails, voice recordings, text messages, instant messages (including messages transmitted via Vireo Software, Northgate Data Systems, Meridian Solutions, or any other messaging platform), photographs, charts, graphs, diagrams, compilations, summaries, calendars, diaries, appointment books, agendas, drafts (including metadata showing revisions), and any other tangible or electronic material, regardless of format, medium, or location of storage.
D. "Communication" or "Communications" shall mean any exchange of information between two or more persons, whether oral, written, or electronic, including but not limited to letters, emails, text messages, instant messages, facsimiles, telephone calls (including any notes, summaries, or recordings thereof), voicemails, videoconferences, in-person meetings, and any other form of transmission or exchange of information, however effected. Where a Communication is oral, the request seeks all Documents memorializing, summarizing, reflecting, or relating to such oral Communication.
E. "You," "Your," "Pinnacle Atlantic," or "PARL" shall mean Pinnacle Atlantic Reinsurance Ltd., including its officers, directors, employees, agents, representatives, affiliates (including but not limited to Pinnacle Atlantic Group Holdings Ltd. and any subsidiary or sister entity within the Pinnacle Atlantic corporate group), predecessors, successors, assigns, and any person or entity acting or purporting to act on its behalf at any relevant time.
F. "QC&S" or "Cedent" shall mean Quorum Casualty & Surety Company, a New York-domiciled stock property and casualty insurance company, NAIC No. 24891.
G. "QIH" or "Quorum" shall mean Quorum Insurance Holdings Corp., the parent holding company of QC&S.
H. "Broadreach" shall mean Broadreach Intermediaries Inc., the reinsurance intermediary broker for the Treaty, located at 100 Wall Street, 18th Floor, New York, NY 10005, including its officers, directors, employees, agents, and representatives, and specifically including James "Jamie" Castellano and any other Broadreach personnel who acted as intermediary with respect to the Treaty.
I. "Meridian Docks Claims" shall mean the thirty-one (31) related commercial general liability bodily injury claims arising from alleged toxic contamination at the Meridian Docks industrial waterfront redevelopment project in Newark, New Jersey, insured under QC&S Policy No. CGL-2020-09844 (policyholder: Meridian Docks Development LLC), and any additional claims arising from the same occurrence or set of related circumstances, together with all cessions, reserves, and IBNR entries relating thereto under the Treaty.
J. "Veridian E&O Claims" shall mean the three (3) related errors and omissions / professional liability claims brought by investors against Veridian Financial Services Inc., insured under QC&S Policy No. PL-2021-15327, which were settled on September 8, 2023, for a combined settlement amount of Thirty-Four Million Five Hundred Thousand Dollars ($34,500,000), consisting of Claim A ($14,200,000), Claim B ($12,800,000), and Claim C ($7,500,000), together with all cessions, reserves, and related entries under the Treaty.
K. "Demand Letter" shall mean the pre-suit demand letter dated February 14, 2026, sent by Hargrove, Fitch & Calloway LLP on behalf of Pinnacle Atlantic to QC&S, demanding return of $78,400,000 in reinsurance recoverables plus $12,600,000 in accrued interest, for a total demand of $91,000,000.
L. "Reservation of Rights Letter" shall mean the reservation of rights letter dated December 12, 2025, sent by Pinnacle Atlantic Reinsurance Ltd. to QC&S regarding Treaty Year 2022 and Treaty Year 2023 cessions under the Treaty.
M. "IBNR" shall mean incurred but not reported reserves, as that term is commonly understood in the insurance and reinsurance industry, and as used in the Treaty and in the actuarial context of this dispute.
N. "Relating to" or "Concerning" shall mean directly or indirectly pertaining to, referring to, reflecting, describing, evidencing, constituting, mentioning, containing, discussing, analyzing, embodying, summarizing, memorializing, or being in any way logically or factually relevant to the subject matter referenced. These terms shall be construed in the broadest sense permitted under applicable law.
O. "Person" shall mean any natural person, corporation, partnership, limited liability company, joint venture, association, trust, estate, governmental entity, regulatory authority, or any other type of entity or organization, whether or not a party to this action.
INSTRUCTIONS
The following instructions apply to each Request set forth herein and shall be read in conjunction with the Definitions above:
1. Time Period. Unless otherwise specified in an individual Request, these Requests cover the period from January 1, 2019 through the date of Respondent's production of documents. To the extent any responsive Documents were created prior to January 1, 2019, but relate to the subject matter of these Requests (including, without limitation, predecessor agreements, course of dealing, or underwriting history), such Documents are also responsive and should be produced.
2. Scope of Search. Respondent shall conduct a diligent and good-faith search of all locations, both physical and electronic, where responsive Documents may reasonably be found. Without limitation, such locations include shared network drives, local hard drives, email servers (including archived emails), document management systems, cloud storage platforms, personal files and devices used for business purposes, backup systems, off-site storage facilities, and the files of any third-party service providers, managing general agents, claims administrators, actuarial consultants, or other agents acting on Pinnacle Atlantic's behalf in connection with the Treaty. This instruction extends to Documents in the possession, custody, or control of Pinnacle Atlantic, including Documents held by affiliates, agents, or third parties that Pinnacle Atlantic has the legal right or practical ability to obtain.
3. Privilege Log. To the extent any Documents responsive to these Requests are withheld in whole or in part on the basis of attorney-client privilege, the attorney work product doctrine, or any other privilege or protection from disclosure, Respondent shall produce a privilege log complying with CPLR § 3122 and applicable case law. For each withheld Document, the privilege log shall identify, at a minimum: (a) the date of the Document; (b) the author(s) or sender(s); (c) the recipient(s) and any persons copied; (d) the general subject matter of the Document (described with sufficient specificity to permit an assessment of the privilege claim without revealing privileged content); (e) the type of Document (e.g., email, memorandum, letter); (f) the number of pages; and (g) the specific privilege or protection asserted. Redacted Documents shall be produced in redacted form with the privilege log identifying the basis for each redaction.
4. Form of Production. Electronically stored information shall be produced in native format with all associated metadata intact, or in single-page TIFF images with extracted text (.txt) files and all available metadata (including, at a minimum, custodian, author, date created, date modified, date sent, date received, sender, recipient(s), CC, BCC, subject line, file name, file path, and file size). Hard-copy Documents shall be produced as searchable PDF files. All Documents, whether produced in native format, TIFF, or PDF, shall bear sequential Bates numbers in a consistent format (e.g., PARL-000001). Documents shall be produced in a manner that preserves family relationships (i.e., parent-child relationships between emails and attachments) and that identifies the custodian from whose files each Document was collected.
5. Continuing Obligation. These Requests are continuing in nature pursuant to CPLR § 3101(h). If, after the date of production, Respondent identifies additional Documents responsive to any Request, or if additional responsive Documents come into Respondent's possession, custody, or control, Respondent is obligated to supplement its production promptly by producing such additional Documents.
6. Document Custodians. Without limiting the scope of the search required under Instruction No. 2, Respondent shall, at a minimum, search the files (including email accounts, personal files, and any Documents in their possession or control) of the following individuals:
(a) Sir Edmund Haverford, Chief Executive Officer, Pinnacle Atlantic Reinsurance Ltd.;
(b) Lorraine Metcalf, Chief Claims Officer, Pinnacle Atlantic Reinsurance Ltd.;
(c) Conrad Hesse, Senior Vice President, Treaty Disputes & Recoveries, Pinnacle Atlantic Reinsurance Ltd.; and
(d) Any other officers, directors, employees, agents, or representatives of Pinnacle Atlantic who were involved in the evaluation, underwriting, administration, claims handling, billing, accounting, auditing, or dispute of Treaty No. PA-QCS-2019-EXL-0044 or the underlying claims at issue herein.
Respondent is directed to identify all custodians whose files were searched in connection with this production.
7. Non-Waiver. The service of these Requests, and the production of Documents in response thereto, shall not constitute, and shall not be deemed to constitute, a waiver by QC&S or Pinnacle Atlantic of any rights under Article 22 of the Treaty, including the right to compel arbitration of this dispute before a three-member arbitration panel seated in New York, New York, under the rules of ARIAS-U.S. QC&S expressly preserves and reserves all rights, remedies, defenses, and arguments relating to the proper forum for resolution of this dispute, including the mandatory arbitration provision of Article 22.
REQUESTS FOR PRODUCTION
REQUEST NO. 1: The Treaty and All Related Agreements
All copies of Treaty No. PA-QCS-2019-EXL-0044 in Your possession, custody, or control, including without limitation the fully executed treaty wording, all endorsements, amendments, addenda, side letters, cover notes, placing slips, and binders, from the inception of the Treaty (July 1, 2019) through the present. This Request specifically includes, but is not limited to:
(a) The original executed treaty wording effective July 1, 2019;
(b) All endorsements or amendments to the Treaty executed at any time during its term;
(c) All addenda, side letters, or supplemental agreements modifying, clarifying, or supplementing any provision of the Treaty;
(d) All cover notes and placing slips prepared in connection with the initial placement and each subsequent renewal or extension of the Treaty;
(e) All Documents evidencing the automatic annual extensions of the Treaty through June 30, 2026, including any extension endorsements, renewal confirmations, or correspondence confirming such extensions; and
(f) The non-renewal notice dated October 1, 2025, and all Documents relating to the preparation, transmittal, and receipt of such notice.
REQUEST NO. 2: Underwriting and Placement Files
All Documents Relating to the underwriting, evaluation, pricing, and placement of the Treaty, including but not limited to:
(a) All underwriting submissions received from or through QC&S, QIH, or Broadreach in connection with the initial placement and any renewal or extension of the Treaty;
(b) All actuarial analyses, loss projections, and risk assessments prepared by or on behalf of Pinnacle Atlantic in evaluating the Treaty, including catastrophe modeling, aggregate loss distribution analyses, and expected loss ratio estimates;
(c) All internal approval memoranda, underwriting committee minutes, reinsurance committee minutes, and board minutes relating to the approval of the Treaty or any renewal or extension thereof;
(d) All pricing models, rate-on-line calculations, and slide-scale premium calculations, including the derivation of the provisional rate of 42%, the minimum premium rate of 35%, and the maximum premium rate of 52%;
(e) All Documents reflecting the experience rating, loss development, and premium adjustment calculations performed by or on behalf of Pinnacle Atlantic in connection with each Treaty Year; and
(f) All correspondence and Communications with Broadreach Intermediaries Inc. Relating to the placement, renewal, and extension of the Treaty, including all market submissions, indications, firm quotations, binding authorities, and placement confirmations.
REQUEST NO. 3: Communications with QC&S and/or QIH
All Communications between Pinnacle Atlantic (including any officer, director, employee, agent, or representative of Pinnacle Atlantic) and QC&S, QIH, or any representative thereof, Relating to the Treaty, from the inception of the Treaty (July 1, 2019) through the present. This Request encompasses all Communications regardless of the subject matter addressed, including without limitation Communications regarding underwriting, claims, premium reporting, loss reporting, reserve development, cession statements, billing, payment, disputes, and any other Treaty-related matter.
REQUEST NO. 4: Communications with Broadreach Intermediaries Inc.
All Communications between Pinnacle Atlantic (including any officer, director, employee, agent, or representative of Pinnacle Atlantic) and Broadreach Intermediaries Inc. (including James "Jamie" Castellano and any other Broadreach personnel) Relating to the Treaty, from the inception of the Treaty (July 1, 2019) through the present. This Request specifically includes, but is not limited to:
(a) All premium transmittals, premium bordereaux, and premium accounting statements exchanged through or with Broadreach;
(b) All loss reports, loss bordereaux, aggregate loss statements, and loss notifications transmitted through or received from Broadreach;
(c) All billing transmittals, payment instructions, and payment confirmations exchanged through or with Broadreach;
(d) All claims settlement notifications, notices of claims, and reserve change notifications transmitted through or received from Broadreach;
(e) All correspondence regarding compliance with Treaty terms and conditions, including notice requirements, reporting obligations, and premium calculation methodologies; and
(f) All other correspondence, memoranda, or Documentation exchanged through or with Broadreach in connection with the Treaty for TY 2020 through TY 2023.
REQUEST NO. 5: Billing and Payment Records
All Documents Relating to billings, invoices, payment requests, and payments made by Pinnacle Atlantic under the Treaty, including but not limited to:
(a) All billing statements, invoices, cession statements, and payment requests issued by QC&S or Broadreach to Pinnacle Atlantic in connection with the Treaty;
(b) All Documents Relating to the seven (7) billing installments paid by Pinnacle Atlantic between October 15, 2022, and March 29, 2024, totaling $78,400,000, including each individual payment amount, the date of each payment, the cession period or Treaty Year to which each payment relates, and any descriptions or notations accompanying such payments;
(c) All wire transfer confirmations, bank statements, payment advices, and other records evidencing each of the seven billing installment payments;
(d) All internal payment authorization records, approval workflows, and sign-off documentation relating to each billing installment payment;
(e) All accounting entries, journal entries, and general ledger postings reflecting each billing installment payment; and
(f) All Communications, whether internal or external, Relating to any questions, concerns, disputes, or issues raised at the time of billing or payment regarding the amounts billed or the propriety of the cessions underlying such billings.
REQUEST NO. 6: Late Notice — Meridian Docks Claims (Article 7)
All Documents Relating to Pinnacle Atlantic's receipt, evaluation, and handling of notice of the Meridian Docks Claims under Article 7 of the Treaty, including but not limited to:
(a) All Documents Relating to the notice of the Meridian Docks Claims received by Pinnacle Atlantic from QC&S via Broadreach on or about May 22, 2022, including the notice itself, any cover correspondence or transmittal documentation, and any internal records reflecting the date and manner of receipt;
(b) All internal analyses, memoranda, correspondence, or Communications evaluating the timeliness of such notice under Article 7 of the Treaty, including any assessment of whether notice was provided within the time periods or in the manner prescribed by Article 7;
(c) All Documents Relating to any alleged prejudice suffered by Pinnacle Atlantic as a result of the timing of QC&S's notice of the Meridian Docks Claims, including any quantification of such alleged prejudice, analysis of lost investigation opportunities, or assessment of the impact of the alleged delay on Pinnacle Atlantic's ability to evaluate or manage the claims;
(d) All Documents reflecting Pinnacle Atlantic's internal assessment of the requirements of Article 7, including any interpretation of the individual claim reporting threshold, the definition of "occurrence" or "event" for purposes of the reporting obligation, and the standard of timeliness applicable to notice under the Treaty;
(e) All Documents reflecting any prior course of dealing or practice between Pinnacle Atlantic and QC&S regarding notice timing under the Treaty or any predecessor reinsurance agreements, including any instances in which Pinnacle Atlantic accepted or paid cessions following notice provided under similar circumstances or within a similar timeframe; and
(f) All Documents reflecting Pinnacle Atlantic's own knowledge of or information regarding the Meridian Docks industrial waterfront redevelopment project, the underlying toxic contamination allegations, or the related claims prior to receipt of formal notice from QC&S.
REQUEST NO. 7: IBNR Allocation Dispute (Article 5)
All Documents Relating to Pinnacle Atlantic's contention that $22,300,000 in IBNR reserve development was improperly allocated by QC&S to Treaty Year 2022 rather than Treaty Year 2021, including but not limited to:
(a) All actuarial analyses, work papers, reserve studies, loss development analyses, and loss triangles performed by or on behalf of Pinnacle Atlantic Relating to the allocation of IBNR reserves among Treaty Years under the Treaty, including any analyses comparing alternative allocation methodologies;
(b) All Documents reflecting Pinnacle Atlantic's interpretation of the term "losses incurred" as defined in Article 5.2 of the Treaty, including any internal memoranda, legal analyses, or Communications addressing the proper methodology for allocating IBNR reserve development to specific Treaty Years;
(c) All Documents Relating to Pinnacle Atlantic's contention that the $22,300,000 in IBNR reserve development relates to accident-year 2021 exposures and should therefore have been allocated to TY 2021 rather than TY 2022, including any analyses of the underlying loss experience, accident-year attribution, and development patterns;
(d) All Documents reflecting Pinnacle Atlantic's own calculation of QC&S's TY 2021 aggregate net incurred loss, whether $104,600,000 or any other figure, including all supporting work papers and data sources;
(e) All Documents reflecting the financial impact analysis, if any, performed by or on behalf of Pinnacle Atlantic, showing that reallocation of $22,300,000 from TY 2022 to TY 2021 would reduce TY 2022 ceded losses from $69,700,000 to $47,400,000, or any alternative quantification of the financial impact of such reallocation;
(f) All Documents Relating to the aggregate attachment point and aggregate limit applicable to TY 2021 and TY 2022, and any analysis of how the disputed IBNR reallocation would affect whether ceded losses breach or exceed such attachment points or limits; and
(g) All Communications between or among Pinnacle Atlantic personnel Relating to the IBNR allocation dispute, including any disagreements or alternative views expressed internally regarding the proper allocation methodology.
REQUEST NO. 8: Follow-the-Fortunes — Veridian E&O Claims (Article 11)
All Documents Relating to Pinnacle Atlantic's evaluation of the Veridian E&O Claims settlement of $34,500,000, including but not limited to:
(a) All Documents reflecting Pinnacle Atlantic's analysis of whether the settlement of the Veridian E&O Claims was made in good faith and in the ordinary course of QC&S's business, including any assessment of QC&S's claims-handling process, the negotiation history, or the terms of the settlement;
(b) All Documents Relating to Pinnacle Atlantic's assessment of the litigation exposure, policy coverage, and damages for each of the three Veridian E&O Claims: Claim A ($14,200,000), Claim B ($12,800,000), and Claim C ($7,500,000), including any independent valuation, litigation risk analysis, or coverage assessment performed by or on behalf of Pinnacle Atlantic;
(c) All Documents reflecting Pinnacle Atlantic's interpretation of Article 11 of the Treaty and the follow-the-fortunes doctrine as applied to the Treaty, including any internal memoranda, legal analyses, or Communications addressing the standard under which a reinsurer may challenge a cedent's settlement under Article 11;
(d) All internal memoranda, analyses, or Communications evaluating whether the Veridian E&O settlement was at "inflated amounts" or lacked a "meaningful litigation exposure analysis," as alleged in the Demand Letter, including the factual basis for such allegations and any quantification of what Pinnacle Atlantic contends would have been a reasonable settlement range;
(e) All Documents reflecting the allocation of ceded losses from the Veridian E&O settlement to TY 2023, including the $8,700,000 cession and the methodology used to determine the portion of the settlement ceded under the Treaty for that Treaty Year;
(f) All Documents Relating to any prior instances in which Pinnacle Atlantic accepted, paid, or challenged settlements made by QC&S under the Treaty or any predecessor agreement, including the application of the follow-the-fortunes doctrine in such instances; and
(g) All Communications between Pinnacle Atlantic and any third party (other than privileged communications with legal counsel, which shall be logged) Relating to the Veridian E&O Claims, the settlement thereof, or the cession of losses arising therefrom under the Treaty.
REQUEST NO. 9: Premium Reporting Dispute (Article 3)
All Documents Relating to Pinnacle Atlantic's contention that QC&S underreported ceded earned premium for Treaty Year 2022 by $6,800,000, including but not limited to:
(a) All calculations, work papers, analyses, and supporting documentation reflecting Pinnacle Atlantic's determination that TY 2022 ceded earned premium was $45,200,000 rather than the $38,400,000 reported by QC&S, including a detailed reconciliation identifying each category of premium that Pinnacle Atlantic contends was omitted or understated;
(b) All Documents Relating to Pinnacle Atlantic's position on the treatment of run-off portfolio transfer premiums and the application of Article 3.4 of the Treaty, including any interpretation of the scope of premiums that are includable or excludable from the ceded earned premium base under Article 3;
(c) All Documents Relating to Pinnacle Atlantic's calculation of the alleged treaty premium underpayment of $2,856,000, derived from the application of the 42% provisional rate to the alleged $6,800,000 shortfall in ceded earned premium, including all supporting computations and assumptions;
(d) All Documents Relating to any claimed termination right, rescission right, offset right, or other contractual remedy arising from the alleged premium underreporting, including any analysis of the Treaty provisions that Pinnacle Atlantic contends give rise to such rights;
(e) All correspondence and Communications with QC&S, QIH, or Broadreach regarding premium reporting discrepancies, premium reconciliations, or premium audit findings for any Treaty Year; and
(f) All Documents Relating to any premium audit, premium verification, or premium reconciliation conducted by or on behalf of Pinnacle Atlantic with respect to the Treaty for any Treaty Year.
REQUEST NO. 10: Interest Calculation
All Documents Relating to Pinnacle Atlantic's calculation of the $12,600,000 in accrued interest claimed in the Demand Letter, including but not limited to:
(a) The applicable interest rate asserted by Pinnacle Atlantic (identified in the Demand Letter as 8% per annum) and all Documents supporting the selection of such rate, including any Treaty provision, statutory provision, or contractual basis therefor;
(b) The principal amounts on which interest was calculated, including any allocation of principal among the seven billing installments or among the Treaty Years or disputed cessions to which such principal relates;
(c) The dates of payment of each of the seven billing installments, the date from which interest began to accrue on each installment, and the ending date for interest accrual;
(d) The methodology used to compute the approximately twenty-four (24) month average interest period referenced in the Demand Letter, including all supporting calculations and assumptions; and
(e) All internal analyses, work papers, spreadsheets, or Communications Relating to the computation, verification, or review of the interest calculation prior to the issuance of the Demand Letter.
REQUEST NO. 11: Reservation of Rights Letter
All Documents Relating to the preparation, issuance, and internal review of the Reservation of Rights Letter dated December 12, 2025, sent by Pinnacle Atlantic to QC&S regarding TY 2022 and TY 2023 cessions, including but not limited to:
(a) All drafts of the Reservation of Rights Letter, including all tracked changes, comments, and editorial revisions;
(b) All internal memoranda, analyses, and Communications leading to the decision to issue the Reservation of Rights Letter, including any evaluations of the factual and legal bases for the positions articulated therein;
(c) All Communications between Pinnacle Atlantic management and its outside counsel, Hargrove, Fitch & Calloway LLP, Relating to the Reservation of Rights Letter (to the extent not protected by attorney-client privilege; privileged Documents shall be identified on the privilege log);
(d) All Documents Relating to the approval process for the Reservation of Rights Letter, including any sign-offs by Sir Edmund Haverford, Lorraine Metcalf, Conrad Hesse, or any other Pinnacle Atlantic officer or director; and
(e) All Documents reflecting QC&S's response to the Reservation of Rights Letter and any subsequent Communications between the parties regarding the issues raised therein.
REQUEST NO. 12: Pre-Suit Demand Letter
All Documents Relating to the preparation, issuance, and internal review of the Demand Letter dated February 14, 2026, sent by Hargrove, Fitch & Calloway LLP on behalf of Pinnacle Atlantic to QC&S, including but not limited to:
(a) All drafts of the Demand Letter, including all tracked changes, comments, and editorial revisions;
(b) All internal memoranda, analyses, and factual investigations conducted by or on behalf of Pinnacle Atlantic in connection with the preparation of the Demand Letter;
(c) All Communications between Pinnacle Atlantic personnel Relating to the decision to issue the Demand Letter, including any deliberations regarding the claims to be asserted, the amounts to be demanded, and the strategic considerations underlying the decision to proceed by demand letter rather than through the Treaty's arbitration mechanism;
(d) All Documents reflecting the factual bases, data sources, and analytical support for each of the four grounds asserted in the Demand Letter (late notice, IBNR misallocation, follow-the-fortunes challenge, and premium underreporting); and
(e) All Documents reflecting the approval process for the Demand Letter, including any authorization by Sir Edmund Haverford, Lorraine Metcalf, Conrad Hesse, or any other Pinnacle Atlantic officer, director, or committee.
For the avoidance of doubt, this Request does not seek Communications between Pinnacle Atlantic and its legal counsel that are protected by the attorney-client privilege or the attorney work product doctrine; however, all such Communications shall be identified on the privilege log required under Instruction No. 3.
REQUEST NO. 13: Arbitration Clause — Article 22
All Documents Relating to Pinnacle Atlantic's position that the arbitration clause in Article 22 of the Treaty — which provides for a three-member arbitration panel seated in New York, New York, under the rules of ARIAS-U.S. — is "inapplicable to the specific claims raised," as stated in the Demand Letter, including but not limited to:
(a) All legal analyses or memoranda (excluding privileged attorney-client Communications, which shall be logged) evaluating the scope, enforceability, or applicability of Article 22 to the claims and disputes raised in the Demand Letter;
(b) All Documents reflecting the negotiation history of Article 22, including any Communications with QC&S, QIH, Broadreach, or any other party regarding the drafting, intended scope, or agreed-upon application of the arbitration provision;
(c) All Documents reflecting any prior invocations of, or agreements to forgo, the Article 22 arbitration procedure under the Treaty or any related reinsurance agreement between Pinnacle Atlantic and QC&S;
(d) All Documents reflecting Pinnacle Atlantic's prior positions (whether in this dispute or any other) regarding the scope or applicability of ARIAS-U.S. arbitration clauses in aggregate excess-of-loss reinsurance treaties; and
(e) All Communications between Pinnacle Atlantic and any third party Relating to the enforceability or applicability of Article 22, including any Communications with legal counsel, brokers, or industry associations (to the extent not privileged; privileged Communications shall be logged).
REQUEST NO. 14: Internal Claims and Dispute Files
All internal files, databases, and records maintained by Pinnacle Atlantic Relating to the Treaty, including but not limited to:
(a) Treaty administration files, including the complete contents of any physical or electronic file maintained by Pinnacle Atlantic for Treaty No. PA-QCS-2019-EXL-0044;
(b) Claims files for TY 2020, TY 2021, TY 2022, and TY 2023, including all underlying claim documentation, reserve evaluations, payment records, and adjuster or claims examiner notes;
(c) Dispute files, litigation hold files, or investigation files maintained by Pinnacle Atlantic Relating to QC&S or the Treaty, including any files created in connection with the Reservation of Rights Letter, the Demand Letter, or any internal investigation of the disputed cessions;
(d) All bordereaux, loss runs, and premium statements received from QC&S or Broadreach in connection with the Treaty for any Treaty Year;
(e) All internal reports, dashboards, summaries, or presentations Concerning the Treaty's performance, loss experience, premium adequacy, or profitability, including any reports prepared for Pinnacle Atlantic's senior management, underwriting committee, board of directors, or parent company; and
(f) All litigation hold notices, document preservation notices, or similar Communications issued by or on behalf of Pinnacle Atlantic in connection with this dispute or any anticipated litigation or arbitration Relating to the Treaty.
REQUEST NO. 15: Actuarial Work Papers and Reserve Analyses
All actuarial work papers, reserve analyses, loss development studies, loss triangles, and actuarial opinions prepared by or for Pinnacle Atlantic Relating to the Treaty, the disputed cessions, or the underlying claims (including the Meridian Docks Claims and the Veridian E&O Claims) for TY 2021 through TY 2023, including but not limited to:
(a) All reserve analyses and reserve opinions prepared by Pinnacle Atlantic's internal actuarial staff Relating to the Treaty;
(b) All reserve analyses, reserve opinions, and actuarial reports prepared by any external consulting actuaries retained by Pinnacle Atlantic Relating to the Treaty, including the engagement letters, scope of work, data provided, and final deliverables;
(c) All loss development factor analyses, including selected loss development factors, actuarial methods applied (e.g., chain ladder, Bornhuetter-Ferguson, Cape Cod), and the rationale for method selection;
(d) All IBNR reserve calculations and supporting work papers, including any comparison of accident-year versus Treaty Year IBNR allocation methodologies;
(e) All Documents reflecting the ultimate loss estimates for the Meridian Docks Claims and the Veridian E&O Claims, as computed or evaluated by Pinnacle Atlantic's actuaries; and
(f) All Communications between Pinnacle Atlantic's actuarial staff and claims staff, underwriting staff, or management Relating to the reserve analyses or loss development for the Treaty.
REQUEST NO. 16: Communications with Pinnacle Atlantic Group Holdings Ltd.
All Communications between Pinnacle Atlantic Reinsurance Ltd. and its parent company, Pinnacle Atlantic Group Holdings Ltd. (or any other affiliate, subsidiary, or entity within the Pinnacle Atlantic corporate group), Relating to the Treaty, the disputed cessions, the Meridian Docks Claims, the Veridian E&O Claims, the premium reporting dispute, the Reservation of Rights Letter, the Demand Letter, or the decision to pursue the claims at issue in this dispute, including but not limited to:
(a) All board of directors minutes, executive committee minutes, risk committee minutes, and audit committee minutes of Pinnacle Atlantic Group Holdings Ltd. or Pinnacle Atlantic Reinsurance Ltd. that discuss or reference the Treaty, the disputed cessions, or this dispute;
(b) All management reports, executive summaries, or briefing papers prepared for the board or executive committee of either entity Relating to the Treaty or this dispute; and
(c) All Communications between senior management of Pinnacle Atlantic Reinsurance Ltd. and senior management of Pinnacle Atlantic Group Holdings Ltd. Relating to the matters at issue herein.
REQUEST NO. 17: Loss Reports and Aggregate Loss Statements
All loss reports, aggregate loss statements, cession statements, and loss development factor analyses provided by or received by Pinnacle Atlantic in connection with the Treaty for TY 2020 through TY 2023, including but not limited to:
(a) All quarterly and annual loss summaries for each Treaty Year;
(b) All bordereau reports (both premium and loss bordereaux) received from QC&S or Broadreach;
(c) All cession statements, claims cession advices, and paid loss advices;
(d) All aggregate net incurred loss calculations and attachment point analyses for each Treaty Year; and
(e) All Documents reflecting Pinnacle Atlantic's own independent computation or verification of the aggregate net incurred losses ceded by QC&S for any Treaty Year.
REQUEST NO. 18: Reinsurer's Own Claims Investigations
All Documents Relating to any independent investigation or assessment conducted by Pinnacle Atlantic (or on its behalf by any third party, including auditors, actuaries, forensic accountants, claims consultants, or any other advisors) into the validity, accuracy, or propriety of the cessions billed by QC&S under the Treaty for TY 2022 ($69,700,000) and TY 2023 ($8,700,000), including but not limited to:
(a) All claims audits, cession audits, or underwriting audits conducted by or on behalf of Pinnacle Atlantic with respect to the Treaty;
(b) All on-site reviews, file reviews, or access requests made by Pinnacle Atlantic under any audit, inspection, or access rights provided by the Treaty;
(c) All reports, findings, and recommendations resulting from any such audit, investigation, or review;
(d) All forensic accounting analyses or premium audits conducted by or on behalf of Pinnacle Atlantic; and
(e) All Communications with any third-party auditor, consultant, or advisor retained in connection with such investigation or assessment.
REQUEST NO. 19: Course of Dealing Under the Treaty and Prior Agreements
All Documents reflecting the course of dealing between Pinnacle Atlantic and QC&S under the Treaty and any predecessor or related reinsurance agreements, including but not limited to:
(a) All Documents reflecting prior acceptance or payment of cessions by Pinnacle Atlantic under the Treaty, including any cessions for TY 2020 or TY 2021 that were accepted without objection;
(b) All Documents reflecting prior notice practices between the parties, including any instances of late notice that were accepted or waived by Pinnacle Atlantic;
(c) All Documents reflecting prior IBNR allocation methodologies accepted or approved by Pinnacle Atlantic under the Treaty or any predecessor agreement;
(d) All Documents reflecting prior premium reconciliations, premium adjustments, or premium audit results under the Treaty;
(e) All Documents reflecting any predecessor, successor, or related reinsurance agreements between Pinnacle Atlantic and QC&S, including any prior aggregate excess-of-loss treaties, quota share treaties, or facultative certificates; and
(f) All Documents reflecting any industry custom or practice relied upon by Pinnacle Atlantic in the administration of the Treaty or in the formulation of its positions in this dispute.
REQUEST NO. 20: Documents Relating to Non-Renewal
All Documents Relating to Pinnacle Atlantic's decision to issue the non-renewal notice dated October 1, 2025, declining to extend the Treaty beyond June 30, 2026, including but not limited to: