2023 Tennessee Code › Title 55 - MOTOR AND OTHER VEHICLES (§§ 55-1-101 — 55-53-105) › Chapter 12 - FINANCIAL RESPONSIBILITY LAW (§§ 55-12-101 — 55-12-311) › Part 1 - FINANCIAL RESPONSIBILITY LAWSHORT TITLE (§§ 55-12-101 — 55-12-142) › Section 55-12-125 - Cancellation of bond or policy - Return of deposit

(a)
Upon request, in any of the following events described in subdivisions (a)(1)-(3), the commissioner shall consent to the immediate cancellation of a bond or certificate of insurance, or the commissioner shall authorize the return of money deposited as proof of financial responsibility, which the state treasurer shall return to the person entitled to the money, or the commissioner shall waive the requirement of filing proof of financial responsibility:
(1)
At any time after expiration of the period of suspension or revocation if, during the period of suspension or revocation, the person has maintained the bond, certificate of insurance, or deposit for the entire period of suspension or revocation, and the commissioner has not received record of an additional conviction that would require or permit the suspension or revocation of the license, registration or nonresident's operating privilege of the person by or for whom the proof was furnished;
(2)
In the event of the death of the person on whose behalf the proof was filed or the permanent incapacity of the person to operate a motor vehicle; or
(3)
If the license of a person who has given proof is surrendered to the commissioner and the person's registration is surrendered to the commissioner of revenue.
(b)
The commissioner shall not consent to the cancellation of a bond or return of money if:
(1)
There is a pending action for damages upon a covered liability;
(2)
A judgment upon the liability is unsatisfied; or
(3)
In the event the person who has filed the bond or deposited the money has, within the preceding suspension or revocation period, been involved as the owner or operator in a motor vehicle accident resulting in injury or damage to another's person or property.
(c)
An affidavit of the applicant as to the nonexistence of the facts in subdivisions (b)(1)-(3), or that the applicant has been released from all liability or has been finally adjudicated not to be liable for such injury or damage, is sufficient evidence thereof in the absence of evidence to the contrary in the records of the commissioner.
(d)
If a person whose proof of financial responsibility has been cancelled or returned under subdivision (a)(1) applies to the commissioner for a license within the period of suspension or revocation when proof of financial responsibility was originally required, then the commissioner shall refuse the application and request that the commissioner of revenue refuse any registration application, unless the applicant reestablishes the proof of financial responsibility for the remainder of the suspension or revocation.
(e)
The department of safety may release a person's requirement to provide proof of financial responsibility after the expiration of the period of suspension or revocation if the department of safety's records establish that during the suspension or revocation period, the person was not convicted of an additional offense authorizing or requiring the suspension or revocation of the person's license, nor was the person's license suspended, revoked, prohibited, or cancelled due to a separate violation of law. This subsection (e) does not apply if there is an unsatisfied judgment based on a motor vehicle accident.
Amended by 2023 Tenn. Acts, ch. 336, s 8, eff. 1/1/2024.
Acts 1977, ch. 446, § 25; T.C.A., § 59-1275; Acts 2007 , ch. 484, § 87.