§ 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 financial services 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
financial services 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.