(a) The department shall cancel a driver's license upon determination that
(1) the licensee is not medically or otherwise entitled to the issuance or retention of the license, or has been adjudged incompetent to drive a motor vehicle;
(2) there is an error or defect in the license;
(3) the licensee failed to give the required or correct information in the licensee's application;
(4) the license was obtained fraudulently;
(5) the licensee is restricted from purchasing alcoholic beverages under AS 04.16.160; if a license is cancelled under this paragraph, when a new license is issued, it must reflect that restriction and the requirements of AS 28.15.111 if the period of restriction under AS 04.16.160 is still in effect;
(6) the licensee has a license issued under AS 28.15.046 and has been convicted of an offense described in AS 28.15.046(c) or (d) that would disqualify the licensee from obtaining a license under that section; or
(7) the licensee owes $1,000 or more in unpaid fines for offenses involving a moving motor vehicle and failed to
(A) pay the fines in full as required by the court; or
(B) make payments in good faith on the unpaid balance of the fines under a payment plan established by the department.
(b) The licensee may apply for a new license at any time after cancellation upon removal of the cause for the cancellation.