(a) Any two (2) or more of the persons involved in, or affected by, an accident as described in § 27-19-601 may, at any time, enter into a written agreement for the payment of an agreed amount with respect to all claims of any of such persons because of bodily injury or death or property damage arising from the accident, which may provide for payment in installments, and may file a signed copy thereof with the Office of Driver Services.

(b) In the event any such written agreement is filed with the office, the office shall not require the deposit of security and shall terminate any prior order of suspension, or, if security has previously been deposited, the office shall immediately return the security to the depositor or his or her personal representative.

(c)

(1) In the event of a default in any payment under the agreement and upon notice of default within one (1) year, the office shall take action suspending the license or the registration or both the license and registration of the person in default as would be appropriate in the event of failure of the person to deposit security when required under this subchapter.

(2) The suspension shall remain in effect and the license or registration shall not be restored unless and until:

(A) Security is deposited as required under this subchapter in such amount as the office may then determine is required under this subchapter;

(B) When, following any such default and suspension, the person in default has paid the balance of the agreed amount; or

(C) One (1) year has elapsed following the effective date of the suspension, and evidence satisfactory to the office has been filed with the office that during that period no action at law upon the agreement has been instituted and is pending.