Section 335. Security and proof required following accident

(a) Not less
  than ten days nor more than sixty days  after  receipt  by  him  of  the
  report  or  notice of an accident which has resulted in bodily injury or
  death, or in damage to the property of any one person in excess  of  one
  thousand  dollars,  the commissioner shall forthwith suspend the license
  of  any  person  operating,  and  the  registration   certificates   and
  registration  plates of any person owning, a motor vehicle in any manner
  involved in such accident unless and until such operator (or  chauffeur)
  or  owner  or  both  shall  have  previously  furnished  or  immediately
  furnishes security sufficient in the judgment  of  the  commissioner  to
  satisfy  any  judgment  or  judgments  for  damages  resulting from such
  accident as  may  be  recovered  against  such  owner  or  operator  (or
  chauffeur)  by  or  on  behalf  of  any  aggrieved  person  or his legal
  representative,  and  unless  and  until  such  owner  or  operator  (or
  chauffeur)  or  both  shall  immediately furnish and thereafter maintain
  proof  of  financial  responsibility  in  the  future.  Where  erroneous
  information  with respect to insurance coverage of the owner or operator
  (or chauffeur) of any such vehicle is furnished to the commissioner,  he
  shall  take appropriate action as above provided within sixty days after
  the receipt by him of correct information with respect to such coverage.
  This section shall  not  apply:  (1)  to  such  owner  or  operator  (or
  chauffeur) if such owner had in effect at the time of such accident with
  respect to such motor vehicle a standard provisions automobile liability
  policy in form approved by the superintendent of insurance and issued by
  an insurance company authorized to do business in this state or, if such
  motor  vehicle  was  not registered in this state or was a motor vehicle
  which was registered elsewhere than in this state at the effective  date
  of  the  policy,  or  the  most  recent  renewal  thereof, an automobile
  liability policy  acceptable  to  the  superintendent  of  insurance  as
  substantially  the  equivalent  of  such  standard provisions automobile
  liability policy; (2) to such operator (or chauffeur), if not the  owner
  of  such  motor  vehicle,  if  there  was  in effect at the time of such
  accident such a policy with respect to his operation of  motor  vehicles
  not owned by him or, if such motor vehicle was a private passenger motor
  vehicle,  with  respect  to  his  operation  of  private passenger motor
  vehicles not owned  by  him  or  (3)  to  such  owner  or  operator  (or
  chauffeur) if the liability of such owner or operator (or chauffeur) for
  damages  resulting  from  such  accident  is,  in  the  judgment  of the
  commissioner, covered by any other form of  liability  insurance  policy
  issued  by  an insurance company authorized to do business in this state
  or by a bond, provided every such policy or  bond  mentioned  herein  is
  subject,  if  the  accident  has  resulted in bodily injury, to a limit,
  exclusive of interest and costs,  of  twenty-five  thousand  dollars  or
  death  to  a  limit,  exclusive of interest and costs, of fifty thousand
  dollars, because of bodily injury to or death of one person in  any  one
  accident  and, subject to said limit for one person, to a limit of fifty
  thousand dollars because of bodily injury to  or  one  hundred  thousand
  dollars  because  of  death  of two or more persons in any one accident,
  and, if the accident  has  resulted  in  injury  to  or  destruction  of
  property,  to  a  limit  of ten thousand dollars because of injury to or
  destruction of property of others in any one accident  or  (4)  to  such
  owner  or  operator if the commissioner shall determine that the failure
  to have liability coverage as described above was caused solely  by  the
  negligence  or  malfeasance  of  a  person  other  than the person whose
  license or registration has been suspended or is subject to  suspension,
  and  that  the  person seeking to avoid such suspension was not aware of
  the lack of such  liability  coverage.  However,  with  respect  to  the
  provisions  of  (4)  above, the burden of proof shall be upon the person

  seeking to avoid such suspension action.  Provided  further,  that  such
  facts  shall  be established by clear and convincing evidence, either by
  the submission of affidavits or at a hearing called in the discretion of
  the commissioner.
    Upon  receipt  of  notice  of  such accident, the insurance carrier or
  surety company which issued such policy or bond shall furnish for filing
  with the commissioner a written notice that such policy or bond  was  in
  effect  at the time of such accident or shall notify the commissioner in
  such manner as he may require in case such policy or  bond  was  not  in
  effect at the time of such accident.
    In  case  any  such operator (or chauffeur) or owner has no license to
  operate issued under this chapter or no motor vehicle registered in  his
  name  in  this  state, he shall not be allowed a license or registration
  until he has complied with this article to the same extent as  would  be
  necessary  if  he  had  held  an operator's or chauffeur's license and a
  motor vehicle registration issued under this chapter at the time of  the
  accident.
    (b)  Such  security,  where ordered, shall be in such form and in such
  amount as the commissioner may require, but in no case in excess of  the
  amount  of  proof  required  by  section three hundred forty-one of this
  article. The commissioner may reduce the amount of security  ordered  in
  any  case  within  six months after the date of the accident, if, in his
  judgment, the  amount  ordered  is  too  large.  In  case  the  security
  originally  ordered  has  been  deposited, the excess deposited over the
  reduced amount ordered  shall  be  returned  to  the  depositor  or  his
  personal  representative  forthwith,  notwithstanding  the provisions of
  subdivision (c) of this section.
    (c) Security furnished in compliance with  the  requirements  of  this
  section  shall  be  placed  by  the  commissioner  in the custody of the
  commissioner of taxation and finance and shall be applicable only to the
  payment of a judgment against the depositor for damages arising  out  of
  the  accident  in  question in an action at law begun not later than one
  year after the  date  of  such  accident  or,  upon  assignment  of  the
  depositor, made not later than one year after the date of such accident,
  to  the  settlement  of  a  claim  arising out of such accident, or upon
  assignment of the depositor, made after the expiration of one year after
  the date of such accident, to the settlement of an action at  law  begun
  not  later  than  one  year after the date of such accident. All of such
  payments made out of the deposited security shall be  made  as  follows:
  Payment  shall  first  be  made to each of the judgment creditors and to
  each of the claimants who have agreed  to  settle  their  claims,  whose
  damages  were  evaluated  by  the commissioner, in an amount not greater
  than the amount fixed in  their  respective  evaluations.  Whenever  the
  commissioner  shall  be  given  evidence,  satisfactory to him, that the
  amounts of all claims for damages against the depositor arising  out  of
  such  accident  are  fixed,  either by judgment or settlement agreement,
  payment shall be made out of  any  balance  remaining  after  the  first
  distribution  to  each  of  those  persons whose judgments or settlement
  amounts have not been fully paid but whose damages were evaluated by the
  commissioner,  in  proportion  to  the  amounts  of   their   respective
  evaluations  unless there is sufficient to make payment in full; and any
  balance remaining after the first and second distributions are completed
  shall be paid to those judgment creditors and those claimants  who  have
  agreed  to  settle their claims but whose damages were not evaluated, in
  proportion to the amounts of their respective  judgments  or  settlement
  amounts  unless  there  is  sufficient  to  make  payment  in full. Such
  deposit, or any balance thereof, shall be returned to the  depositor  or
  his  personal representative whenever after the expiration of such year,

  the commissioner shall be given  evidence,  satisfactory  to  him,  that
  there  is  no  such  action  pending and no such judgment unsatisfied or
  whenever, before the expiration of such year, the commissioner shall  be
  given  evidence,  satisfactory  to  him,  that there is no such judgment
  unsatisfied and that there is no existing cause of  action  against  the
  depositor for damages arising out of such accident.
    (c-1) After security, furnished in compliance with the requirements of
  this  section,  has remained on deposit for five years, the commissioner
  shall make a determination as to whether the  deposit,  or  any  balance
  thereof,  is returnable to the depositor or the person entitled thereto.
  In the event that such deposit, or any balance thereof, is determined to
  be returnable, but remains unclaimed by  the  depositor  or  the  person
  entitled  thereto  for  a  period of one year following the date of such
  determination, such unclaimed deposit, or any balance thereof, shall  be
  deemed  abandoned  property  subject  to the provisions of the abandoned
  property law.
    (d) The provisions of subdivision (a) of this section shall not  apply
  to  the  owner  of  a  motor  vehicle  operated  by  one having obtained
  possession or control thereof without the expressed or  implied  consent
  of  such owner, to a police officer or member of the state police who is
  compelled to assume the custody and operation  of  a  motor  vehicle  of
  another  because  such  motor vehicle was (1) stolen from or lost by the
  owner, (2) abandoned, either by the owner or any other  person  with  or
  without  the owner's consent, (3) is being operated by a person disabled
  so as not to be able to operate it properly, or (4) is being operated by
  an intoxicated person; or to either the owner or  operator  of  a  motor
  vehicle  involved  in an accident wherein no damage or injury was caused
  to other than the person or property of such owner or operator.
    (e) In lieu of deposit of  security  when  required  pursuant  to  the
  provisions  of  this  section  the  commissioner  may  accept  a written
  agreement, executed and acknowledged by the person required  to  deposit
  security  and  any  person  who  has  sustained bodily injury, including
  death, or damage to his property, or his legal representative, providing
  for the payment of an agreed amount in installments, with respect to the
  claims of such  person  for  injuries  or  damages  resulting  from  the
  accident.  In  the  event of default in payment of any installment under
  such agreement, then upon notice of such default the commissioner  shall
  forthwith   suspend   the  license  and  registration  certificates  and
  registration plates of the person in  default  until  release  has  been
  filed with the commissioner indicating that the entire agreed amount has
  been  paid. But in no case shall such agreement be used in lieu of proof
  of maintenance  of  financial  responsibility  in  the  future  required
  pursuant to the provisions of this section.