A. Any two or more of the persons involved in or affected by an accident, as described in Section 7-201 of this title, may at any time enter into a written agreement for the payment of an agreed amount with respect to all claims of any of the persons because of bodily injury to or death or property damage arising from the accident, which agreement may provide for payment in installments, and may file a signed copy thereof with the Department of Public Safety.

B. The Department, to the extent provided by the written agreement filed with it, shall not require the deposit of security and shall terminate any prior order of suspension, provided that proof of financial responsibility has been filed; provided, if security has previously been deposited, the Department shall immediately return the security to the depositor or to the personal representative of the depositor.

C. Upon notice to the Department of a default in any payment under the agreement, the Department shall take action suspending the driving privilege of the person in default as in the same manner as for failure of the person to deposit security when required under this chapter. When reporting a default, the amount already paid and the outstanding balance shall be provided to the Department. Provided, this subsection shall not be deemed to require any party to the agreement to make notice to the Department of a default of any payment.

D. The suspension provided for in subsection C of this section shall remain in effect and the driving privilege of the person shall not be restored unless and until:

1. Security is deposited and proof of financial responsibility is filed as required under this chapter, the security to be in such amount as the Department may then determine;

2. The person in default has paid the balance of the agreed amount; or

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

Added by Laws 1961, p. 356, § 7-209. Amended by Laws 1965, c. 187, § 5, emerg. eff. June 8, 1965; Laws 2009, c. 62, § 8, eff. Nov. 1, 2009.