New York Laws
Article 7 - Motor Vehicle Safety Responsibility Act
353 - When Commissioner May Release Proof.

(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.

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