I don't have an Atlantis, so we'll have to go with what was said above. If the pin is not adjustable, it more than likely is too short. I have a few attys like that and can't and won't use them on my apollo.
As for the insulator, make sure it is in one piece, not melted, deformed, etc. It's there to prevent direct shorts. Very easy to do in a hybrid since the battery is right there.
The only thing I will say on tears on the battery is that I make my own determination and either scrap the battery, or re-wrap it. Others may and will do what they want with tears....