CONFIDENTIAL — ATTORNEY WORK PRODUCT — SUBJECT TO REVISION PRIOR TO SERVICE
SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF NEW YORK — COMMERCIAL DIVISION
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QUORUM CASUALTY & SURETY COMPANY,
Claimant/Counterclaimant,
-against-
PINNACLE ATLANTIC REINSURANCE LTD.,
Respondent/Claimant.
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Index No. ___ (To be assigned)
FIRST SET OF INTERROGATORIES PROPOUNDED BY QUORUM CASUALTY & SURETY COMPANY TO PINNACLE ATLANTIC REINSURANCE LTD.
Treaty at Issue: Aggregate Excess-of-Loss Reinsurance Treaty No. PA-QCS-2019-EXL-0044
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These interrogatories are propounded in connection with the dispute arising under Aggregate Excess-of-Loss Reinsurance Treaty No. PA-QCS-2019-EXL-0044 and are served without waiver of Quorum Casualty & Surety Company's position that the dispute is subject to mandatory arbitration under Article 22 of the Treaty. In the event arbitration proceedings are commenced under the ARIAS-U.S. Rules, these interrogatories shall be deemed served in that forum with all applicable modifications.
Draft — March 2026
Propounding Party:
Quorum Casualty & Surety Company (NAIC No. 24891) 200 Constitution Plaza, Suite 3200 Hartford, Connecticut 06103
Counsel for Propounding Party:
Calderwood & Harkness LLP One Liberty Plaza, 55th Floor New York, New York 10006
Attn: Yuki Nakamura
Telephone: (212) 555-7400
Responding Party:
Pinnacle Atlantic Reinsurance Ltd. Clarendon House, 14 Church Street Hamilton HM 11, Bermuda
U.S. Office: 1285 Avenue of the Americas, 28th Floor New York, New York 10019
Counsel for Responding Party:
Hargrove, Fitch & Calloway LLP 51 West 52nd Street, 40th Floor New York, New York 10019
Attn: Nathaniel R. Calloway III
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PRELIMINARY STATEMENT
Quorum Casualty & Surety Company ("QC&S") hereby propounds this First Set of Interrogatories upon Pinnacle Atlantic Reinsurance Ltd. ("Pinnacle Atlantic" or "PARL") pursuant to Section 3130 of the New York Civil Practice Law and Rules ("CPLR") and, to the extent this dispute proceeds to arbitration, pursuant to any discovery orders or procedural directives issued by the arbitration panel under the ARIAS-U.S. Rules. QC&S respectfully requests that Pinnacle Atlantic respond to each interrogatory fully, separately, and under oath within the time prescribed by applicable rules.
These interrogatories arise from the pre-suit demand letter dated February 14, 2026 (the "Demand Letter"), sent by Hargrove, Fitch & Calloway LLP on behalf of Pinnacle Atlantic, demanding the return of Seventy-Eight Million Four Hundred Thousand Dollars ($78,400,000) in paid reinsurance recoverables, plus 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 advances four principal grounds in support of Pinnacle Atlantic's demand: (1) alleged late notice under Article 7 of the Treaty with respect to the Meridian Docks Claims; (2) alleged misallocation of $22,300,000 in IBNR reserve strengthening under Article 5 of the Treaty; (3) alleged breach of the follow-the-fortunes doctrine under Article 11 of the Treaty with respect to QC&S's settlement of the Veridian E&O Claims; and (4) alleged underreporting of ceded earned premium under Article 3 of the Treaty.
These interrogatories seek the factual and actuarial bases for each of these four grounds of dispute, the identity of all persons with knowledge of the relevant facts, the calculation methodology underlying the $12,600,000 interest claim, and the factual and legal basis for Pinnacle Atlantic's position that the arbitration clause contained in Article 22 of the Treaty is inapplicable to the claims raised in the Demand Letter.
QC&S expressly reserves and does not waive its position that the dispute between the parties is subject to mandatory arbitration under Article 22 of Aggregate Excess-of-Loss Reinsurance Treaty No. PA-QCS-2019-EXL-0044. Service of these interrogatories shall not be construed as a submission to the jurisdiction of any court or as an acknowledgment that litigation is the proper forum for resolution of this dispute. QC&S propounds these interrogatories in all forums in which this dispute may be adjudicated, including without limitation the Supreme Court of the State of New York, New York County, Commercial Division, and any arbitration tribunal constituted under the ARIAS-U.S. Rules.
DEFINITIONS
As used in these interrogatories, the following terms shall have the meanings set forth below. These definitions are intended to be construed broadly and are not intended to limit the scope of any interrogatory in which they appear.
1. "Treaty" means the Aggregate Excess-of-Loss Reinsurance Treaty No. PA-QCS-2019-EXL-0044, effective July 1, 2019, between QC&S (as cedent) and Pinnacle Atlantic (as reinsurer), including all endorsements, amendments, addenda, riders, schedules, exhibits, and extensions through June 30, 2026, and any binders, cover notes, or interim agreements related thereto.
2. "Treaty Year" or "TY" means the twelve-month period beginning on July 1 of a given calendar year and ending on June 30 of the following calendar year during the Treaty term. By way of example and not limitation: TY 2021 means the period from July 1, 2021, through June 30, 2022; TY 2022 means the period from July 1, 2022, through June 30, 2023; and TY 2023 means the period from July 1, 2023, through June 30, 2024.
3. "Demand Letter" means the letter dated February 14, 2026, from Hargrove, Fitch & Calloway LLP, on behalf of Pinnacle Atlantic, addressed to QC&S, demanding return of $78,400,000 in paid reinsurance recoverables plus $12,600,000 in accrued interest, for a total demand of $91,000,000, together with all enclosures, attachments, and exhibits thereto.
4. "Reservation of Rights Letter" means the letter dated December 12, 2025, from Pinnacle Atlantic to QC&S, in which Pinnacle Atlantic reserved its rights with respect to Treaty Year 2022 and Treaty Year 2023 cessions under the Treaty, together with all enclosures, attachments, and exhibits thereto.
5. "Meridian Docks Claims" means the thirty-one (31) related commercial general liability bodily injury claims arising from alleged toxic contamination at the Meridian Docks industrial waterfront redevelopment project located in Newark, New Jersey, insured under QC&S commercial general liability policy No. CGL-2020-09844, issued to Meridian Docks Development LLC, together with all related subrogation claims, cross-claims, counterclaims, declaratory judgment actions, and coverage disputes arising from or relating to the same underlying incidents.
6. "Veridian E&O Claims" means the three (3) related errors and omissions / professional liability claims (designated as Claim A, Claim B, and Claim C) brought by investors against Veridian Financial Services Inc., insured under QC&S professional liability policy No. PL-2021-15327, which were settled on September 8, 2023, for a combined total of $34,500,000 (Claim A: $14,200,000; Claim B: $12,800,000; Claim C: $7,500,000).
7. "Broadreach" means Broadreach Intermediaries Inc., the reinsurance intermediary broker designated under Article 9 of the Treaty, including all officers, directors, employees, agents, and representatives of Broadreach, and any predecessors, successors, or affiliates thereof.
8. "Document(s)" means, as broadly defined under the CPLR and applicable court rules, all written, recorded, or graphic materials of every kind, including but not limited to electronically stored information ("ESI"), emails, text messages, instant messages, memoranda, letters, correspondence, reports, actuarial work papers, accounting records, ledgers, spreadsheets, presentations, slide decks, meeting minutes, board minutes, committee minutes, draft documents, notes, summaries, calendars, diaries, log entries, telephone records, voicemails, audio recordings, video recordings, photographs, charts, graphs, maps, contracts, agreements, invoices, checks, wire transfer confirmations, and all other tangible or electronic materials, regardless of format, medium, or location.
9. "Person(s)" means any natural person, corporation, partnership, limited partnership, limited liability company, limited liability partnership, joint venture, association, trust, estate, governmental entity, regulatory body, or other legal entity of any kind.
10. "You," "Your," and "Pinnacle Atlantic" mean Pinnacle Atlantic Reinsurance Ltd., its parent company Pinnacle Atlantic Group Holdings Ltd., and all of their respective officers, directors, employees, agents, attorneys, consultants, actuaries, accountants, auditors, underwriters, claims adjusters, and other representatives acting on their behalf or at their direction, whether currently employed or retained or formerly employed or retained.
11. "QC&S" means Quorum Casualty & Surety Company (NAIC No. 24891), including its officers, directors, employees, agents, and representatives.
12. "IBNR" means incurred but not reported losses, including case reserve development on known claims, as that term is used in the reinsurance industry and as defined or applied under the Treaty.
13. "Identify" (with respect to a person) means to state the person's full legal name, title or position, employer or other institutional affiliation, business address, telephone number, email address (if known), and the nature and extent of the person's involvement in, or knowledge of, the subject matter of the interrogatory.
14. "Identify" (with respect to a document) means to state the document's date (or approximate date), author(s), recipient(s), addressee(s), and any persons copied, the subject matter or title, the type or nature of the document (e.g., memorandum, email, report, spreadsheet), the number of pages, and the current custodian or location of the document, including any Bates number or other identification number if the document has been produced in this or any related proceeding.
15. "Describe" means to provide a complete, detailed, and narrative explanation of all relevant facts, circumstances, events, and considerations, including the who, what, where, when, why, and how of the subject matter of the interrogatory.
16. "Communication" means any oral, written, or electronic exchange of information between two or more persons, including but not limited to face-to-face conversations, telephone calls, videoconferences, letters, emails, text messages, instant messages, and any other means of transmitting information.
17. "Relate to" or "relating to" means concerning, referring to, describing, evidencing, constituting, reflecting, pertaining to, arising from, or having any connection, in whole or in part, to the subject matter referenced.
INSTRUCTIONS
The following instructions apply to each interrogatory set forth herein and shall be read in conjunction with the applicable provisions of the CPLR and the Uniform Rules for the Commercial Division of the Supreme Court, as well as any applicable arbitration rules and procedural orders.
1. Full and Complete Responses. Pinnacle Atlantic shall respond to each interrogatory fully, separately, completely, and under oath within the time prescribed by the CPLR or, if applicable, within the time established by the arbitration panel. Each interrogatory shall be answered individually, and responses shall not incorporate by reference answers to other interrogatories except where expressly appropriate to avoid unnecessary duplication.
2. Identification of Persons with Knowledge. Where an interrogatory calls for the identification of persons with knowledge, Pinnacle Atlantic shall identify all persons who participated in, contributed to, witnessed, or otherwise have knowledge of the relevant subject matter, regardless of whether such persons are current or former officers, directors, employees, agents, consultants, or representatives of Pinnacle Atlantic.
3. Objections. If Pinnacle Atlantic objects to any interrogatory or any part thereof, Pinnacle Atlantic shall state the specific grounds for the objection with particularity and shall answer the interrogatory to the fullest extent not objectionable. A general or blanket objection shall not be deemed sufficient. An objection to any part of an interrogatory shall not be construed as an objection to any other part of the same interrogatory.
4. Privilege Log. If any information responsive to these interrogatories is withheld in whole or in part on the grounds of attorney-client privilege, work product doctrine, or any other privilege or protection, Pinnacle Atlantic shall provide a privilege log identifying each withheld document or communication with sufficient specificity to enable QC&S and any tribunal to assess the applicability of the claimed privilege. The privilege log shall include, for each entry, the date of the document or communication, the author(s) and recipient(s), the general subject matter, the number of pages, and the specific privilege or protection asserted.
5. Continuing Obligation to Supplement. These interrogatories are continuing in nature. Pinnacle Atlantic is under a continuing obligation to supplement its responses promptly if additional, different, or corrective information becomes available after the initial responses are served, as required by CPLR § 3101(h) and any applicable arbitration rules or orders.
6. Subparts. Each subpart of an interrogatory that is lettered or numbered shall be treated as a separate interrogatory only to the extent required by applicable rules or court order. QC&S takes the position that subparts of an interrogatory that are logically related to a single topic constitute a single interrogatory for purposes of any numerical limitation on interrogatories.
7. Time Period. Unless otherwise specified, each interrogatory covers the period from July 1, 2019 (the effective date of the Treaty) through the date on which responses are served.
8. Construction. These interrogatories shall be construed broadly and liberally so as to require the fullest possible response. The use of the singular includes the plural, and vice versa. The use of any gender includes all genders. The terms "and" and "or" shall be construed conjunctively or disjunctively as necessary to make the interrogatory inclusive rather than exclusive. The term "including" shall mean "including but not limited to."
INTERROGATORIES
INTERROGATORY NO. 1
Identification of Persons with Knowledge — Generally
Identify each person (including but not limited to officers, directors, employees, agents, consultants, actuaries, attorneys, reinsurance intermediaries, and any other individuals) who has knowledge of any facts relating to Pinnacle Atlantic's claims as asserted in the Demand Letter dated February 14, 2026, including the grounds for seeking the return of $78,400,000 in reinsurance recoverables and $12,600,000 in accrued interest under or in connection with Aggregate Excess-of-Loss Reinsurance Treaty No. PA-QCS-2019-EXL-0044.
For each person identified, describe the general subject matter(s) of their knowledge and the basis for their involvement in or awareness of the matters at issue in this dispute.
Without limiting the generality of the foregoing, your response shall specifically include, but not be limited to, the following individuals to the extent they have any knowledge of any facts relevant to this dispute:
(a) Sir Edmund Haverford, Chief Executive Officer of Pinnacle Atlantic Group Holdings Ltd.;
(b) Lorraine Metcalf, Chief Claims Officer of Pinnacle Atlantic Reinsurance Ltd.;
(c) Conrad Hesse, Senior Vice President, Treaty Disputes & Recoveries, Pinnacle Atlantic Reinsurance Ltd.;
(d) Any and all actuaries, actuarial analysts, or actuarial consultants retained by or employed by Pinnacle Atlantic in connection with the Treaty or the claims at issue in this dispute;
(e) Any and all persons at Broadreach Intermediaries Inc. with whom Pinnacle Atlantic communicated regarding the Treaty, including but not limited to James Castellano, Account Executive; and
(f) Any and all external consultants, advisors, or experts retained by Pinnacle Atlantic in connection with the matters at issue in this dispute.
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INTERROGATORY NO. 2
Factual Basis for Late Notice Claim (Article 7) — Meridian Docks Claims
Describe in detail the complete factual basis for Pinnacle Atlantic's contention that QC&S failed to provide timely notice under Article 7 of the Treaty with respect to the Meridian Docks Claims — i.e., 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, issued to Meridian Docks Development LLC.
Without limiting the generality of the foregoing, specifically state:
(a) The date on which Pinnacle Atlantic contends QC&S was first obligated to provide notice of the Meridian Docks Claims to Pinnacle Atlantic under Article 7 of the Treaty, and the factual basis for that date;
(b) The specific provision(s) of Article 7 that Pinnacle Atlantic contends triggered the notice obligation, including identification of any individual claim threshold, aggregate threshold, or other triggering event set forth in Article 7 that Pinnacle Atlantic contends was met or exceeded, and the date(s) on which any such threshold was met or exceeded;
(c) The date on which Pinnacle Atlantic contends it first received notice of the Meridian Docks Claims from QC&S, from Broadreach Intermediaries Inc., or from any other source. QC&S's position is that notice was given on May 22, 2022, via Broadreach. If Pinnacle Atlantic disputes this date or contends that the notice was deficient in any respect, state the factual basis for such dispute;
(d) The date on which Pinnacle Atlantic contends QC&S first established reserves for the Meridian Docks Claims. QC&S's position is that initial reserves were established on March 15, 2021. If Pinnacle Atlantic disputes this date, state the factual basis for such dispute;
(e) Whether Pinnacle Atlantic contends that QC&S had notice, knowledge, or information concerning the underlying Meridian Docks Claims, or the potential for such claims, prior to the date on which QC&S first established reserves. If so, describe the complete factual basis for such contention, including the date(s) of any alleged prior notice or knowledge, the nature of such notice or knowledge, and the source(s) of any information Pinnacle Atlantic relies upon;
(f) The specific prejudice, if any, that Pinnacle Atlantic contends it suffered as a result of the alleged late notice, including but not limited to: (i) the amount of any additional losses or costs that Pinnacle Atlantic claims to have incurred as a result of the alleged late notice; (ii) any investigation, inquiry, or review that Pinnacle Atlantic contends it was unable to conduct due to the alleged late notice; and (iii) any other harm, disadvantage, or impairment that Pinnacle Atlantic contends resulted from the alleged late notice; and
(g) Any specific actions that Pinnacle Atlantic contends it would have taken, but was unable to take, had timely notice been provided, including but not limited to any involvement in claims handling, any involvement in settlement negotiations, any right to associate in the defense of the underlying claims, any retrocessional coverage that Pinnacle Atlantic contends it was unable to secure, and any other measures Pinnacle Atlantic contends it would have pursued.
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INTERROGATORY NO. 3
Persons with Knowledge — Late Notice Claim
Identify each person who participated in, contributed to, or has knowledge of Pinnacle Atlantic's evaluation of the timeliness of QC&S's notice regarding the Meridian Docks Claims. Without limiting the generality of the foregoing, identify each person who: (i) reviewed any notice correspondence from QC&S or Broadreach relating to the Meridian Docks Claims; (ii) analyzed or interpreted Article 7 of the Treaty with respect to the Meridian Docks Claims; (iii) assessed, evaluated, or opined upon any prejudice alleged to have resulted from the claimed late notice; (iv) participated in any meeting, telephone call, or communication regarding Pinnacle Atlantic's late notice contention; or (v) prepared, contributed to, or reviewed any memorandum, report, or analysis regarding the late notice issue.
For each person identified, describe the nature and scope of their involvement, including the dates of their involvement and the specific aspects of the late notice issue on which they have knowledge.
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INTERROGATORY NO. 4
Factual Basis for IBNR Misallocation Claim (Article 5)
Describe in detail the complete factual basis for Pinnacle Atlantic's contention that QC&S improperly allocated Twenty-Two Million Three Hundred Thousand Dollars ($22,300,000) in IBNR reserve strengthening to Treaty Year 2022 (July 1, 2022 – June 30, 2023) that Pinnacle Atlantic contends should have been attributed to Treaty Year 2021 (July 1, 2021 – June 30, 2022).
Without limiting the generality of the foregoing, specifically state:
(a) The specific definition of "losses incurred" under Article 5 of the Treaty, including Article 5.2, that Pinnacle Atlantic relies upon to support its contention that the $22,300,000 in IBNR reserve strengthening should be allocated to TY 2021 rather than TY 2022. Identify the specific language in Article 5 and Article 5.2 that Pinnacle Atlantic contends governs the allocation of IBNR reserves to a particular Treaty Year;
(b) The specific underlying claims or categories of claims (by line of business, policy number, insured, accident date, or otherwise) to which the $22,300,000 in IBNR relates. If the $22,300,000 in IBNR relates to multiple categories of claims, identify each category and the amount of IBNR allocated to each;
(c) The accident year(s) of the underlying claims to which the $22,300,000 in IBNR relates;
(d) The actuarial methodology or loss development analysis that Pinnacle Atlantic contends supports the allocation of the $22,300,000 to TY 2021 rather than TY 2022. Describe in detail the methods, assumptions, data sources, loss development factors, and analytical techniques on which Pinnacle Atlantic relies;
(e) Identify any actuaries, actuarial firms, or actuarial consultants retained by Pinnacle Atlantic to analyze the IBNR allocation issue, and for each such actuary, firm, or consultant, describe the work performed, the data reviewed, the analyses conducted, and the conclusions reached, including the dates of any reports or work product;
(f) State Pinnacle Atlantic's calculation of what it contends the correct TY 2022 aggregate net incurred loss and ceded loss would be if the $22,300,000 were reallocated from TY 2022 to TY 2021. For reference, QC&S notes that its reported TY 2022 aggregate net incurred loss was $189,700,000, and that if $22,300,000 were subtracted, the resulting figure would be $167,400,000, yielding a ceded loss of $47,400,000 against the $120,000,000 retention (i.e., $167,400,000 − $120,000,000 = $47,400,000). State whether Pinnacle Atlantic agrees or disagrees with this arithmetic, and if Pinnacle Atlantic disagrees, provide its own calculation with full supporting detail;
(g) State Pinnacle Atlantic's calculation of what it contends the TY 2021 aggregate net incurred loss would be with the reallocated IBNR. For reference, QC&S notes that Pinnacle Atlantic's undisputed TY 2021 aggregate net incurred loss figure was $104,600,000, and that if the $22,300,000 were added, the resulting figure would be $126,900,000, which would exceed the $120,000,000 retention by $6,900,000. State whether Pinnacle Atlantic agrees or disagrees with this arithmetic, and if Pinnacle Atlantic disagrees, provide its own calculation with full supporting detail; and
(h) State whether Pinnacle Atlantic disputes any cession for TY 2021 or, conversely, whether Pinnacle Atlantic acknowledges that the reallocation of the $22,300,000 from TY 2022 to TY 2021 would result in a TY 2021 cession to Pinnacle Atlantic of $6,900,000. If Pinnacle Atlantic does not acknowledge a TY 2021 cession of $6,900,000, state the complete basis for its position.
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INTERROGATORY NO. 5
Persons with Knowledge — IBNR Allocation
Identify each person who participated in, contributed to, or has knowledge of Pinnacle Atlantic's analysis of the IBNR allocation issue described in Interrogatory No. 4, including but not limited to: any internal actuaries, external actuarial consultants, underwriters, claims personnel, accounting personnel, financial analysts, or other consultants or advisors. For each person identified, describe the nature of the work performed, the dates of their involvement, and the conclusions they reached or contributed to.
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INTERROGATORY NO. 6
Factual Basis for Follow-the-Fortunes / Settlements Claim (Article 11) — Veridian E&O Cluster
Describe in detail the complete factual basis for Pinnacle Atlantic's contention that QC&S's settlement of the Veridian E&O Claims on September 8, 2023, for a combined total of Thirty-Four Million Five Hundred Thousand Dollars ($34,500,000) — comprising Claim A at $14,200,000, Claim B at $12,800,000, and Claim C at $7,500,000 — was not made in the ordinary course, lacked good faith, or lacked businesslike conduct, thereby vitiating the follow-the-fortunes obligation under Article 11 of the Treaty.
Without limiting the generality of the foregoing, specifically state:
(a) For each of the three Veridian E&O Claims (Claim A, Claim B, and Claim C individually), the specific facts supporting Pinnacle Atlantic's contention that the settlement amount was inflated, unreasonable, or otherwise improper. Describe each factual basis separately for each claim;
(b) What Pinnacle Atlantic contends the reasonable settlement value of each of the three Veridian E&O Claims was, and the complete basis for that valuation, including any comparable settlements, litigation exposure analyses, expert opinions, or other evidence on which Pinnacle Atlantic relies;
(c) The specific actions or omissions by QC&S in the claims handling and settlement process that Pinnacle Atlantic contends constituted a lack of good faith, a lack of businesslike conduct, or conduct outside the ordinary course. Describe each such act or omission with specificity, including dates, participants, and the nature of the alleged deficiency;
(d) Whether Pinnacle Atlantic contends that QC&S conducted any litigation exposure analysis or risk assessment prior to the September 8, 2023 settlement, and if Pinnacle Atlantic contends that QC&S did not conduct any such analysis, the factual basis for that contention, including any documents or communications that Pinnacle Atlantic contends should have been, but were not, prepared;
(e) Whether Pinnacle Atlantic contends that QC&S settled the Veridian E&O Claims for the purpose of pushing QC&S's TY 2023 aggregate net incurred losses above the $120,000,000 retention and thereby generating a cession to Pinnacle Atlantic. QC&S notes that its TY 2023 aggregate net incurred loss was $128,700,000, of which $8,700,000 was ceded to Pinnacle Atlantic (i.e., $128,700,000 − $120,000,000 = $8,700,000). If Pinnacle Atlantic contends that QC&S's settlement was motivated by a desire to exceed the retention, state the complete factual basis for that contention, including any communications, documents, circumstantial evidence, or expert analysis on which Pinnacle Atlantic relies;
(f) Whether Pinnacle Atlantic had any communications with QC&S, Broadreach Intermediaries Inc., or any other person regarding the Veridian E&O Claims or the proposed settlement of those claims at any time prior to September 8, 2023. If so, identify all such communications, including the date, the participants, the medium of communication, and the substance of each such communication; and
(g) Whether Pinnacle Atlantic raised any objection, concern, or inquiry regarding the Veridian E&O settlement at any time between the settlement date (September 8, 2023) and the Reservation of Rights Letter (December 12, 2025). If so, identify all such objections, concerns, or inquiries, including the date, the participants, the medium of communication, and the substance of each. If Pinnacle Atlantic raised no objection during this approximately twenty-seven-month period, state the reason for the delay.
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INTERROGATORY NO. 7
Persons with Knowledge — Follow-the-Fortunes / Veridian E&O
Identify each person who participated in, contributed to, or has knowledge of Pinnacle Atlantic's evaluation of the Veridian E&O Claims settlement, including but not limited to: any claims adjusters, claims examiners, claims managers, litigation counsel (to the extent not privileged), consultants, underwriters, or other persons who analyzed the settlement amounts, QC&S's claims handling, QC&S's settlement negotiations, or the reasonableness of the settlement terms. For each person identified, describe the nature of their involvement and the dates of their participation.
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INTERROGATORY NO. 8
Factual Basis for Premium Reporting Claim (Article 3)
Describe in detail the complete factual basis for Pinnacle Atlantic's contention that QC&S underreported ceded earned premium for Treaty Year 2022 by Six Million Eight Hundred Thousand Dollars ($6,800,000).
Without limiting the generality of the foregoing, specifically state:
(a) Pinnacle Atlantic's calculation of ceded earned premium for TY 2022, including all line items, categories of premium, and amounts, resulting in Pinnacle Atlantic's asserted figure of $45,200,000. Provide a complete itemization showing how each component of ceded earned premium was computed;
(b) Identify each category or type of premium that Pinnacle Atlantic contends QC&S failed to include in its reported ceded earned premium of $38,400,000 for TY 2022. For each category, state the amount of premium that Pinnacle Atlantic contends was excluded and the factual and contractual basis for Pinnacle Atlantic's contention that such premium should have been included;
(c) State whether Pinnacle Atlantic's calculation of ceded earned premium for TY 2022 includes run-off portfolio transfer premiums, and if so, the amount of such premiums and the complete factual and contractual basis for Pinnacle Atlantic's contention that such premiums are properly included in ceded earned premium notwithstanding Article 3.4 of the Treaty. Identify the specific language of Article 3.4 on which Pinnacle Atlantic relies or, alternatively, the specific language that Pinnacle Atlantic contends does not preclude inclusion of run-off portfolio transfer premiums;
(d) State the calculation of the alleged treaty premium underpayment resulting from the alleged underreporting of ceded earned premium. The Demand Letter implies a provisional rate of 42%; accordingly, QC&S calculates the alleged underpayment as $6,800,000 × 42% = $2,856,000. State whether Pinnacle Atlantic agrees or disagrees with this calculation, and if Pinnacle Atlantic disagrees, provide its own calculation with full supporting detail, including the premium rate applied and the basis for that rate;
(e) State whether Pinnacle Atlantic contends that the alleged underreporting of ceded earned premium constitutes grounds for termination of the Treaty, and if so, identify the specific Treaty provision that Pinnacle Atlantic contends authorizes termination, the factual basis for invoking such provision, and whether Pinnacle Atlantic has issued or intends to issue a notice of termination; and
(f) State whether Pinnacle Atlantic contends that the alleged underreporting of ceded earned premium entitles it to an offset against amounts otherwise owed by Pinnacle Atlantic under the Treaty, and if so, describe the offset calculation in full detail, including all amounts netted and the Treaty provisions authorizing such an offset.
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INTERROGATORY NO. 9
Persons with Knowledge — Premium Reporting
Identify each person who participated in, contributed to, or has knowledge of Pinnacle Atlantic's analysis of QC&S's ceded earned premium reporting for TY 2022, including but not limited to: any underwriters, accountants, auditors, actuaries, financial analysts, or other persons who reviewed QC&S's premium reports, conducted any premium audit or review, or contributed to Pinnacle Atlantic's conclusion that QC&S underreported ceded earned premium by $6,800,000. For each person identified, describe the nature and scope of their involvement and the dates of their participation.
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INTERROGATORY NO. 10
Calculation of Interest Claim ($12,600,000)
Describe in detail the calculation methodology for the Twelve Million Six Hundred Thousand Dollars ($12,600,000) in accrued interest demanded in the Demand Letter dated February 14, 2026.
Without limiting the generality of the foregoing, specifically state:
(a) The interest rate applied to the principal amount(s) and the contractual, statutory, or other legal basis for that rate. If Pinnacle Atlantic applied different rates to different amounts or different time periods, identify each rate and the amount and period to which it was applied;
(b) The principal amount(s) on which interest was calculated. If interest was calculated on varying principal amounts (e.g., increasing as successive billing installments were paid), identify each principal amount and the period during which each was outstanding;
(c) The start date(s) for the interest calculation for each payment installment. QC&S notes that Pinnacle Atlantic paid $78,400,000 in aggregate across seven billing installments between October 15, 2022, and March 29, 2024. For each installment, state the start date for the interest calculation and the basis for selecting that date;
(d) The end date for the interest calculation. The Demand Letter is dated February 14, 2026. State whether interest was calculated through that date or through some other date;
(e) Whether interest was calculated on a simple or compound basis. If compound, state the compounding frequency (e.g., annually, semi-annually, quarterly, monthly, daily) and the basis for selecting that frequency;
(f) Provide a full arithmetic reconciliation showing, step by step, how the total of $12,600,000 in interest was derived from the stated principal amount(s), rate(s), and time period(s). The reconciliation should be presented in sufficient detail to permit independent verification of the calculation, including a line item for each billing installment showing the principal, the applicable rate, the start date, the end date, and the resulting interest amount; and
(g) Whether the interest claim is based on (i) a specific contractual provision of the Treaty (and if so, identify the article and section), (ii) a statutory basis under New York Insurance Law, New York General Obligations Law, CPLR § 5004, or any other New York statute, (iii) a statutory or common law basis under Bermuda law, or (iv) some other legal basis. If the interest claim rests on multiple bases, identify each.
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INTERROGATORY NO. 11
Treaty Article 22 — Basis for Asserting Inapplicability of Arbitration Clause
Describe in detail the complete factual and legal basis for Pinnacle Atlantic's position, as asserted in the Demand Letter (through counsel at Hargrove, Fitch & Calloway LLP), that the arbitration clause in Article 22 of the Treaty is inapplicable to the claims raised in the Demand Letter.
Without limiting the generality of the foregoing, specifically state:
(a) The specific language of Article 22 that Pinnacle Atlantic contends limits the scope of the arbitration clause, and Pinnacle Atlantic's interpretation of that language;
(b) Whether Pinnacle Atlantic contends that any or all of its four grounds for dispute — (i) late notice under Article 7, (ii) IBNR misallocation under Article 5, (iii) follow-the-fortunes / settlement reasonableness under Article 11, and (iv) premium reporting under Article 3 — fall outside the scope of Article 22. For each ground, state whether Pinnacle Atlantic contends it falls within or outside the scope of Article 22, and the complete factual and legal basis for each such contention;
(c) Whether Pinnacle Atlantic intends to argue that Article 22 applies only to certain categories of disputes (e.g., disputes concerning the formation or validity of the Treaty, or disputes concerning loss adjustment) and not to others (e.g., disputes concerning premium reporting or accounting), and if so, the complete basis for such argument;
(d) Whether Pinnacle Atlantic contends that the arbitration clause in Article 22 was waived, modified, superseded, or rendered unenforceable by the parties' course of dealing, any subsequent agreement, any correspondence, any oral understanding, or any other act or omission. If so, state the complete factual basis for such contention, including the dates of any relevant acts or communications;
(e) Identify any prior disputes between Pinnacle Atlantic (or any affiliate of Pinnacle Atlantic Group Holdings Ltd.) and QC&S (or any affiliate of Quorum Insurance Holdings Corp.) in which the Article 22 arbitration clause was or was not invoked. For each such prior dispute, state: the treaty or agreement at issue, the nature of the dispute, the amounts in dispute, whether arbitration was demanded or commenced, the forum in which the dispute was resolved, and the outcome; and
(f) Whether Pinnacle Atlantic intends to file suit in the Supreme Court of the State of New York, New York County, Commercial Division, or in any other court of competent jurisdiction, and if so, the anticipated timing of such filing. If Pinnacle Atlantic intends to oppose any motion by QC&S to compel arbitration, state the grounds on which Pinnacle Atlantic will rely.
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INTERROGATORY NO. 12
Pinnacle Atlantic's Payment History and Reservation of Rights
Describe all facts and circumstances surrounding Pinnacle Atlantic's payment of the Seventy-Eight Million Four Hundred Thousand Dollars ($78,400,000) in reinsurance recoverables across seven billing installments between October 15, 2022, and March 29, 2024, under the Treaty.
Without limiting the generality of the foregoing, specifically state:
(a) The date and amount of each of the seven billing installments paid by Pinnacle Atlantic, including the Treaty Year(s) and cession(s) to which each installment related, the method of payment (e.g., wire transfer, check), and the payee;
(b) Whether Pinnacle Atlantic reserved any rights, raised any objections, expressed any concerns, or communicated any qualifications regarding any billing installment at or before the time of payment. If so, describe each such reservation, objection, concern, or qualification in detail, including the date, medium, and content of any communication, and the identity of all persons involved;
(c) The date on which Pinnacle Atlantic first internally questioned, challenged, or disputed the validity or accuracy of any of the TY 2022 or TY 2023 cessions. Describe the circumstances that prompted such questioning, including the identity of the person(s) who first raised the issue, the nature of the concern, and any internal communications, meetings, or analyses that followed;
(d) All facts and circumstances leading to the issuance of the Reservation of Rights Letter dated December 12, 2025, including: (i) the identity of all persons who participated in or contributed to the decision to issue the Reservation of Rights Letter; (ii) the date on which the decision was made; (iii) any internal analyses, memoranda, reports, or presentations prepared in connection with the decision; and (iv) any communications with Broadreach Intermediaries Inc. or any other third party relating to the decision; and
(e) All facts and circumstances leading to the retention of Hargrove, Fitch & Calloway LLP and the issuance of the Demand Letter dated February 14, 2026, including: (i) the date on which Hargrove, Fitch & Calloway LLP was retained; (ii) the identity of the persons who participated in the decision to retain outside counsel; (iii) the scope of the engagement; and (iv) any internal analyses, memoranda, reports, or presentations prepared in connection with the decision to issue the Demand Letter.
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INTERROGATORY NO. 13
Communications with Broadreach Intermediaries Inc.
Identify and describe all communications between Pinnacle Atlantic (including any officer, director, employee, agent, or representative of Pinnacle Atlantic) and Broadreach Intermediaries Inc. (including any officer, director, employee, agent, or representative of Broadreach, specifically including James Castellano, Account Executive) relating to Aggregate Excess-of-Loss Reinsurance Treaty No. PA-QCS-2019-EXL-0044, from July 1, 2019, through the date on which responses to these interrogatories are served.
Without limiting the generality of the foregoing, specifically identify and describe:
(a) All communications regarding the Meridian Docks Claims, including the date of each communication, the participants (by name and title), the medium of communication (e.g., email, telephone, letter, in-person meeting), and the substance of each communication;
(b) All communications regarding the Veridian E&O Claims, including the date of each communication, the participants (by name and title), the medium of communication, and the substance of each communication;
(c) All communications regarding TY 2022 and TY 2023 billing installments, loss reports, premium reporting, quarterly or annual account statements, or any other accounting or financial reporting under the Treaty; and
(d) All communications regarding the Reservation of Rights Letter dated December 12, 2025, the Demand Letter dated February 14, 2026, or any dispute or potential dispute between Pinnacle Atlantic and QC&S relating to the Treaty.
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INTERROGATORY NO. 14
Pinnacle Atlantic's Internal Analyses and Reports
Identify all internal memoranda, reports, analyses, presentations, committee minutes, board materials, executive summaries, or other documents prepared by or for Pinnacle Atlantic (including documents prepared by external consultants, actuaries, accountants, or advisors at Pinnacle Atlantic's direction or for Pinnacle Atlantic's benefit) relating to:
(a) The decision to dispute the TY 2022 and TY 2023 cessions under the Treaty, including all analyses of the merits of each of the four grounds of dispute (late notice, IBNR misallocation, follow-the-fortunes, and premium reporting);
(b) Any actuarial analysis of QC&S's loss development, IBNR allocation, reserve adequacy, or aggregate net incurred losses for TY 2021, TY 2022, or TY 2023, including any independent actuarial reviews, peer reviews, or challenge analyses;
(c) Any claims review, claims audit, or investigation of QC&S's handling, reserving, or settlement of the Meridian Docks Claims or the Veridian E&O Claims;
(d) Any premium audit, premium review, or analysis of QC&S's ceded earned premium reporting for any Treaty Year, including any comparison of QC&S's reported figures to Pinnacle Atlantic's own calculations or to information obtained from Broadreach or any other source; and
(e) The assessment of Pinnacle Atlantic's litigation exposure, settlement authority, negotiation strategy, or risk tolerance with respect to this dispute, to the extent not protected by attorney-client privilege or work product doctrine. If any document responsive to this subpart is withheld on grounds of privilege or work product, Pinnacle Atlantic shall include such document on its privilege log with sufficient detail to permit evaluation of the claim of protection.
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INTERROGATORY NO. 15
Related or Prior Disputes
State whether Pinnacle Atlantic (or any affiliate of Pinnacle Atlantic Group Holdings Ltd.) has been involved in any other dispute, claim, demand, arbitration, litigation, or proceeding with QC&S (or any affiliate of Quorum Insurance Holdings Corp., Nasdaq: QIHC) under the Treaty or under any other reinsurance treaty, agreement, or contract, at any time from January 1, 2015, through the date on which responses to these interrogatories are served.
If so, for each such dispute, state:
(a) The identity of the parties, the treaty or agreement number, the treaty years at issue, and the amounts in dispute;
(b) The forum in which the dispute was resolved, including whether the dispute was resolved through arbitration, litigation, negotiated settlement, mediation, or other means; and
(c) The outcome of each such dispute, including the amounts paid or recovered, the date of resolution, and any precedential findings or awards relating to the interpretation of treaty provisions similar to those at issue in this dispute.
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