Which act allows third parties to claim directly against insurers if the insured is insolvent?

The Third Party (Rights Against Insurers) Act 2010 is significant because it enables third parties to pursue claims directly against an insurer in situations where the insured party is insolvent. This legislative change was implemented to streamline the process for third parties, ensuring they can still obtain compensation when the party responsible for a loss can no longer meet its obligations due to insolvency.

Prior to this act, if the insured became insolvent, the third party would have to go through a more complex and lengthy process to claim from the insurer. The 2010 Act alleviates this burden by allowing third parties to step directly into the shoes of the insured (subject to certain conditions) and thus simplifies the claims process, ensuring that victims can still receive compensation from the insurer without needing to involve the insolvent insured.

The other options refer to different contexts. The Contracts (Rights of Third Parties) Act 1999 deals with the rights of third parties to enforce contractual terms, but it does not specifically address the issue of insolvency. The Insurance Act 2015 modernizes insurance contract law, focusing on transparency and fairness but not specifically on third-party claims against insurers. The Consumer Rights Act 2015 primarily addresses consumer rights and protections, and while it does