N.Y. Vehicle & Traffic Law § 353: When commissioner may release proof

§ 353. When commissioner may release proof. The commissioner shall

upon request consent to the cancellation of any bond or insurance policy

or return to the person entitled thereto any money or securities,

deposited pursuant to this article as proof of financial responsibility,

or waive the requirement of filing proof of financial responsibility in

any of the following events:

(1) In the event of the death of the person on whose behalf such proof

was filed, or the permanent incapacity of such person to operate a motor

vehicle; or

(2) In the event the person who has given proof of financial

responsibility surrenders his operator's or chauffeur's license,

registration certificates and registration plates to the commissioner,

but the commissioner shall not release such proof in the event any

action for damages upon a liability referred to in this article is then

pending, or any judgment upon any such liability then outstanding and

unsatisfied, or in the event the commissioner has received notice that

such person has within the period of three months immediately preceding

been involved as a driver in any motor vehicle accident. An affidavit

of the applicant of the non-existence of such facts shall be sufficient

evidence thereof in the absence of evidence to the contrary in the

records of the bureau.

Whenever any person to whom proof has been surrendered, as provided in

this section, applies for an operator's or chauffeur's license or the

registration of a motor vehicle, any such application shall be refused

unless the applicant shall reestablish such proof.