(a) Except for suspensions under § 55-12-115, and the proof required as provided in § 55-12-114, a person who is required to provide proof of financial responsibility shall maintain that proof for the period of the revocation or suspension. If a person elects to use a policy of insurance and financial responsibility insurance certificate as proof of financial responsibility under this section, then the effective date on the financial responsibility certificate is the date upon which financial responsibility was proven, and financial responsibility must be maintained for the period of the suspension or revocation.
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Terms Used In Tennessee Code 55-12-126

  • Bond: means irrevocable bond executed by a corporate surety company licensed to do business as a corporate surety company in this state, with penalties of like amounts as those pertaining to an insurance policy or the amount of damages suffered, whichever is less, the bond to guarantee the payment of any final judgment which might thereafter be rendered against the bonded party resulting from the accident up to and including the total amount of the bond, except the bond may specify a limited payment to those persons who have at the time of its execution filed claims with the commissioner, and shall contain a clause therein that it shall remain in force for one (1) year from the date of the accident or until final determination of any court action brought as a result of the accident, whichever may be the longer period of time. See Tennessee Code 55-12-102
  • Commissioner: means the commissioner of safety, unless otherwise indicated or unless the context otherwise requires. See Tennessee Code 55-12-102
  • Department: means the department of revenue. See Tennessee Code 55-1-111
  • Driver: means :
    (A) For purposes of a conventionally operated vehicle, every person who drives or is in actual physical control of a vehicle. See Tennessee Code 55-8-101
  • Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
  • Judgment: means any judgment that shall have become final by expiration without appeal of the time within which an appeal might have been perfected, or by final affirmation on appeal, rendered by a court of competent jurisdiction of any state or of the United States, upon a cause of action arising out of the ownership, maintenance, or use of any motor vehicle, for damages, including damages for care and loss of services, because of bodily injury to or death of any person, or for damages because of injury to or destruction of property, including the loss of use thereof. See Tennessee Code 55-12-102
  • License: means any license, temporary instruction permit, or temporary license issued under the laws of this state, or any other state, pertaining to the licensing of persons to operate motor vehicles within this state. See Tennessee Code 55-12-102
  • Motor vehicle: means every self-propelled vehicle that is designed for use upon the highway, including trailers and semitrailers designed for use with motor vehicles, and every vehicle that is propelled by electric power obtained from overhead wires but not operated upon rails, except traction engines, road rollers and farm tractors. See Tennessee Code 55-12-102
  • Operator: means :
    (A) For purposes of a conventionally operated vehicle, every person who is in actual physical control of a motor vehicle whether or not licensed as an operator or chauffeur under the laws of this state. See Tennessee Code 55-12-102
  • Owner: means a person who holds the legal title of a motor vehicle, or in the event a motor vehicle is the subject of an agreement for the conditional sale or lease thereof with the right of purchase upon performance of the conditions stated in the agreement and with an immediate right of possession vested in the conditional vendee or lessee, or in the event a mortgagor of a vehicle is entitled to possession, then the conditional vendee, lessee or mortgagor shall be deemed the owner for the purpose of this part. See Tennessee Code 55-12-102
  • Person: means a natural person, firm, copartnership, association, corporation, or an engaged ADS. See Tennessee Code 55-8-101
  • Registration: means a registration certificate or certificates and registration plates issued under the laws of this state pertaining to the registration of motor vehicles. See Tennessee Code 55-12-102
  • State: means any state, territory or possession of the United States, the District of Columbia, or any province of the Dominion of Canada. See Tennessee Code 55-12-102
  • United States: includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
  • Vehicle: means every device in, upon or by which any person or property is or may be transported or drawn upon a highway, excepting devices used exclusively upon stationary rails or tracks. See Tennessee Code 55-8-101
(b)

(1) If a policy of insurance or a bond required under this section and issued to a person is cancelled or terminated, then the commissioner shall suspend the license of the person and shall request that the commissioner of revenue suspend the person’s motor vehicle registration. The license of the person must immediately be surrendered to the commissioner of safety, and the person’s motor vehicle registration must immediately be surrendered to the commissioner of revenue.
(2) If during the suspension or revocation period requiring proof of financial responsibility, the person filed proof of another policy or bond meeting the requirements of this part, then the person’s license and registration shall not be suspended or revoked as required in subdivision (b)(1).
(3) A notice of suspension issued under this section must be sent by United States mail to the last known address of the person at least twenty (20) days prior to the effective date of suspension, and must state that the operator, owner, or both, are entitled to an administrative hearing before the commissioner of safety, or the commissioner’s designee, conducted pursuant to a request under § 55-12-103(a). A request for an administrative hearing must be submitted in writing on or before the final date of suspension.
(c) Upon reapplying for a driver license, a person whose license, registration, or both have been suspended for failure to maintain evidence of financial responsibility shall refile and maintain with the commissioner of safety evidence of financial responsibility, pay a sixty-five-dollar restoration fee, and pass the driver license examination if the license has been expired, revoked, or suspended for more than one (1) renewal cycle, as described in § 55-50-337. If the commissioner of safety, pursuant to this subsection (c), reinstates a person’s driver license that has been suspended under the authority of this section, then the commissioner of safety shall request that the commissioner of revenue reinstate the person’s motor vehicle registration revoked under authority of this section. After the person has paid to the commissioner of revenue the appropriate motor vehicle registration fees provided by § 55-4-111, § 55-4-112, or § 55-4-113, the registration must be reinstated immediately.
(d) 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. If the department of safety, pursuant to this subsection (d), releases the requirement that a person furnish proof of financial responsibility, and if the person’s motor vehicle registration has been suspended or revoked because of the person’s failure to furnish that proof, then the commissioner of safety shall request that the commissioner of revenue reinstate the person’s registration and, upon payment to the commissioner of revenue of the appropriate motor vehicle registration fees provided by § 55-4-111, § 55-4-112, or § 55-4-113, the registration must be reinstated immediately. Notwithstanding another law to the contrary, this subsection (d) does not apply if there is an unsatisfied judgment based on a motor vehicle accident.
(e) On or after January 1, 2024, a person who was subject to the requirements of proof of financial responsibility in this chapter prior to January 1, 2024, may petition the department of safety to reduce the time that remains for the person to comply with the proof of financial responsibility requirements. If the person has not been convicted of an additional offense requiring the suspension or revocation of a license by the department, has no outstanding suspension, revocation, cancellation, or other prohibition on the person’s license, and the person does not have an unsatisfied judgment based on a motor vehicle accident, then the department shall grant the reduction.
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