Market agreement is a gentlemen’s agreement entered into by the 04 Public Sector Insurers under the guidance and supervision of GIPSA, It has no legal backing as it is not concluded under any law. Likewise the classes and types of Insurance brought under the market Agreement are to be underwritten by all the companies on the same basis with equal seriousness as a tariffed class.
Insurance Encyclopedia
Market area
Specific geographical region where an insurance plan’s chief market potential is located. It may not be the same as its service area, but many times it can overlap.
Market assistance plan (Health Insurance)
A plan promoted by the Department of Insurance that assists buyers in purchasing specific types of difficult-to-find insurance.
Market basket
See: hospital market basket .
Market basket index
Table used by the Centers for Medicare and Medicaid Services (CMS) to compute and update the indexes for most facilities. It takes into consideration three elements: a set of input categories (labor, supplies, purchased services); a set of price proxies that represent price levels for the input categories; and a fixed set of weights (proportions) that represent the importance of each input category in providers’ input expenditures for the base year. The formula is to take the actual or projected values of the price proxies for a year, multiply them by the category weights, and total them to get the overall market basket index value for the year. For physicians’ office practices, see Medicare Economic Index (MEI) .
Market capacity
See: Capacity.
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The amount of insurance that an be absorbed by all the insurers in the relevant market.
Market captive
The parent of a captive insurance company.
Market conduct
A measure of how insurers and their agents are complying with the laws that govern the insurance business, specifically the sales and marketing, and issuance of products.
Market conduct examination
An examination conducted by the state’s insurance department to evaluate the practices and operations of an insurer. This examination aims to establish the insurer’s authority to conduct business in that state.
Market Cost / Market Value
Current price at which an item of real or personal property can be exchanged between a willing buyer and a willing seller. In case of real estate the market value depends on demand and supply and is established by obtaining offers for purchase. Personal property which is readily available in market can be valued by its purchase price or invoice price from the market.