(1) The license or nonresident's operating privilege suspended under section 42-7-301 shall remain so suspended and not be renewed, nor shall any such license be issued to such person, unless there is filed with the director evidence satisfactory to the director that such person has been released from liability, has entered into a contract used as security pursuant to section 42-7-301 (7), or has been finally adjudicated not liable, or until:

(a) Such person deposits and files or there has been deposited and filed on behalf of such person the security and proof of financial responsibility for the future required under section 42-7-301; or

(b) Three years have elapsed following the date of such accident and evidence satisfactory to the director has been filed with the director that during such period no action for damages arising out of such accident has been instituted, and such person has filed or then files and maintains proof of financial responsibility for the future as provided in section 42-7-408; except that a contract used as security pursuant to section 42-7-301 (7) may provide for a different period of time; or

(c) Three years have elapsed since the failure to timely cure any default, after notice, under a contract used as security pursuant to section 42-7-301 (7) and evidence satisfactory to the director has been filed with the department showing that no civil action to enforce the contract has been filed during such period.

(2) If the director determines that the driver is not responsible for any damages to any other party as a result of the accident, the driver may:

(a) Prevent a suspension from occurring by filing future proof of liability insurance pursuant to section 42-7-408; or

(b) Reinstate a license, if a suspension has already occurred, by filing future proof of liability insurance pursuant to section 42-7-408 and paying the reinstatement fee.