Sec 28-4088. Duration, cancellation and return of proof

A. On request, the director shall either:

1. Consent to the immediate cancellation of a certificate of insurance.

2. Direct and the state treasurer shall return to the person who is entitled monies or certificates of deposit deposited pursuant to this chapter as proof of financial responsibility.

3. Waive the requirement of filing proof under any of the following circumstances:

(a) At any time after three years from the date the proof was required.

(b) The death of the person on whose behalf the proof was filed or the permanent incapacity of the person to operate a motor vehicle.

(c) If the person who has given proof surrenders the person's license and registration to the director.

B. The director shall not consent to the return of monies or certificates of deposit if an action for damages on a liability covered by the proof is pending, if a judgment on that liability is unsatisfied or if the person who has deposited the monies or certificates of deposit has been involved as an operator or owner in a motor vehicle accident resulting in injury or damage to the person or property of others within one year immediately preceding the request. An affidavit of the applicant stating that these facts do not exist, that the applicant has been released from all of the applicant's liability or that the applicant has been finally adjudicated not liable for the injury or damage is sufficient evidence in the absence of evidence to the contrary in the records of the director.

C. If a person whose proof has been returned under subsection A, paragraph 3, subdivision (c) applies for a license or registration within three years from the date proof was originally required, the director shall refuse the application unless the applicant reestablishes the proof for the remainder of the three year period.