XYZ Insurance Company recently received its certificate of authority to sell property insurance in Illinois. XYZ is an Iowa insurer but will sell its products through its licensed Illinois producers. Which of the following statements is CORRECT about XYZ Company's involvement in the FAIR Plan?

XYZ may not join the FAIR Plan, because it is a foreign company.

XYZ may not join the FAIR Plan, because its producers are licensed in Illinois.

Membership in the FAIR Plan is optional for XYZ.

XYZ must belong to the FAIR Plan because it has a certificate of authority to sell homeowners insurance in Illinois.

Answer: D

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The voluntary relinquishment of a legal right is called
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