(a) The department shall upon request, or may at its own discretion, cancel any bond or any certificate of insurance, or the department shall direct the return to the person entitled thereto of any money or securities deposited pursuant to this code as proof of financial responsibility, or the department shall waive the requirement of filing proof of financial responsibility in any of the following events:
(1) When the person is no longer required to maintain the proof under the provisions of this code.
(2) At any time after three years from the date the proof was required.
(3) Upon the death of the person on whose behalf the proof was filed.
(4) The permanent incapacity of the person to operate a motor vehicle if the person surrenders for cancellation his or her driver’s license to the department.
(b) The department shall not release proof filed by the bond of individual sureties as set forth in Section 16434, or if given in the manner prescribed by Section 16435, if any action for damages upon a liability referred to in this code is then pending or if any judgment upon any the liability is outstanding and unsatisfied. An affidavit of the applicant of the nonexistence of those facts shall be prima facie evidence thereof.
(Amended by Stats. 1989, Ch. 1157, Sec. 19.)