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A number of important developments have taken place in the last month. The Law Commission, early in August 2001, published its final report on the Third Parties (Rights against Insurers) Act 1930. The Law Commission has proposed a wide-ranging reform of the law relating to direct claims against the liability insurers by the victims of insolvent assureds. Many of the defects which had become apparent in the legislation in recent years are to be reformed. There have also been three important judgments of the Court of Appeal. In Gan v Tai Ping (Nos 2 and 3), 2 July 2001, the Court of Appeal has given detailed consideration to the scope of a claims co-operation clause, and in particular has rejected the notion that reinsurers are under an implied obligation not unreasonably to refuse to folow settlements reached without their consent by the reinsured. In HIH Casualty and General v Chase Manhattan Bank , 30 July 2001, the Court of Appeal has discussed the permissible scope of exclusions of the duty of utmost good faith and the remedies for breach of that duty. The crucial parts of that decision relate to the nature of a broker?s duty of disclosure and to the relationship between innocent, negligent and fraudulent utmost good faith. In K/S Merc-Skandia v Lloyd?s Underwriters , August 2001 the Court of Appeal has decided that the continuing duty of utmost good faith has survived The Star Sea . These matters will be discussed in full in forthcoming issues of Insurance Law Monthly .