Question

What is the difference between a single limit and a split limit in expressing liability limits in the PAP?

Explain how the Securities and Exchange Commission attempts to prevent violations of SEC regulations.

Answer 1

A single limit is a kind of liability that is often expressed by a single amount. It is also known as CSL or Combined Single Limit. This amount is the maximum amount that an insurance company is bound to pay for the damages resulting due to a single accident. For instance, if the single limit is $100,000 per accident, then the insurance company will pay up to this amount only for bodily injuries or property damages or both. Whereas the split limit liability segregates the amount in three areas, the amount for bodily injuries resulted from the accident, an amount for bodily injury per person, and an amount for property damages. For instance, a standard split limit liability coverage is distributed as 100-300-50. This implies the insurance company will cover up to $100,000 for bodily injuries per person, $300,000 for the overall damages occurred due to the accident and $50,000 towards property damages.

The SEC attempts to prevent the violations and protect the investors by its five divisions and twenty-four offices across the United States. One such division is the Divison of Corporation Finance that helps the SEC in ensuring and overseeing that pubic companies are accurately and transparently disclosing the relevant information in a timely manner to the general public. This division also reviews documents that public companies are supposed to file with the SEC. Another of such divisions the Divison of Trading and Markets that assists the SEC in keeping the markets efficient, fair and in proper order. This division oversees the exchanges, listed firms, Selfreguilatroy organizations, credit agencies, and clearing agencies.