What is indicated by the term 'admitted market'?

The term 'admitted market' refers specifically to insurance companies that are licensed and regulated by state departments of insurance. These companies must adhere to the regulatory requirements set by the state, which includes maintaining specific solvency standards, filing rates, and ensuring policy forms are approved for use. This regulatory oversight is designed to protect consumers and ensure that these insurers operate in a financially stable manner.

In contrast, the other options refer to different categories of insurers or attributes that do not align with the definition of the admitted market. For instance, insurers in the non-admitted market are not regulated in the same way and can operate without state approval for rates or forms, which is a significant distinction. Additionally, limiting the definition to companies that primarily sell auto insurance or provide health insurance excludes the broader scope of insurers that operate within the admitted market, which may offer various types of coverage beyond those specified.