The third edition of this popular textbook provides a comprehensive and authoritative treatment of insurance law and offers a practical approach to the subject. It covers a wide range of topics from particular policies and the protection of third parties, to claims and the consequences of settlement. Updated in light of new cases and the Financial Services Authority regulation of insurance.Since the last edition there has been a wealth of development in this area including the Solvency II framework directive. This directive aims to help ensure the financial stability of insurance (and reinsurance) companies by introducing more sophisticated solvency requirements which will take better account of the risks the companies must deal with. Other developments: The law on fraudulent claims has been refined and clarified in cases such as Stemson v AMP General, Danepoint Ltd v Underwriting Insurance Ltd, Tonkin v UK Insurance, Shah v Ul-Haq and Direct Line v Fox. The credit crunch has made insolvency even more important than usual, leading to a number of cases on the Third Parties (Rights Against Insurers) Act 1930, including Re T & N (No 4), KR v RSA, Shinedean v Alldown, Law Society v Shah and Goldsmith Williams v Travellers Insurance. The difficult area of brokers' duties has also produced important new case law such as BP v AON, Gaughan v Tony McDonagh & Co Ltd, HIH Casualty v JLT Risk Solutions, GNER v JLT and many more. The flow of cases on non-disclosure has continued - Forrest v CGU, North Star Shipping v Sphere Drake, Bonner v Cox and Rendall v Combined Ins Co of America. New cases in areas such as increase of risk, limitation of action, marine insurance, motor insurance (including the MIB) notification of claims, settlement, subrogation and warranties. European Parliament and Council Directive (2009/138/EC) on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II). It includes Financial Services and Markets Act 2000; The Mutual Societies (Transfers) Order 2009, SI 2009/509; and, Solicitors' Indemnity Insurance Rules 2009.