(a) The commissioner shall, upon receiving an accident report of an accident occurring in this state that has resulted in bodily injury, or death, or damage to the property of any one (1) person in excess of one thousand five hundred dollars ($1,500), and upon determining that there is a reasonable possibility of a judgment against the owner, operator, or both, and upon receiving notice of a claim filed against the owner, operator, or both, revoke the license and shall request the commissioner of revenue to immediately revoke all registrations of the owner, operator, or both, of a motor vehicle involved in the accident, and in case of a nonresident, the privilege of operating a motor vehicle within this state and of the use within this state of any motor vehicle owned by the nonresident, unless the operator, owner, or both, deposits security in a sum that shall be sufficient in the judgment of the commissioner, and in no event less than one thousand five hundred dollars ($1,500), to satisfy any judgment or judgments resulting from the accident that may be recovered against the operator, owner, or both.

Terms Used In Tennessee Code 55-12-105

  • Bond: means irrevocable bond executed by a corporate surety company licensed to do business as a corporate surety company in this state, with penalties of like amounts as those pertaining to an insurance policy or the amount of damages suffered, whichever is less, the bond to guarantee the payment of any final judgment which might thereafter be rendered against the bonded party resulting from the accident up to and including the total amount of the bond, except the bond may specify a limited payment to those persons who have at the time of its execution filed claims with the commissioner, and shall contain a clause therein that it shall remain in force for one (1) year from the date of the accident or until final determination of any court action brought as a result of the accident, whichever may be the longer period of time. See Tennessee Code 55-12-102
  • Commissioner: means the commissioner of safety, unless otherwise indicated or unless the context otherwise requires. See Tennessee Code 55-12-102
  • Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
  • Judgment: means any judgment that shall have become final by expiration without appeal of the time within which an appeal might have been perfected, or by final affirmation on appeal, rendered by a court of competent jurisdiction of any state or of the United States, upon a cause of action arising out of the ownership, maintenance, or use of any motor vehicle, for damages, including damages for care and loss of services, because of bodily injury to or death of any person, or for damages because of injury to or destruction of property, including the loss of use thereof. See Tennessee Code 55-12-102
  • License: means any license, temporary instruction permit, or temporary license issued under the laws of this state, or any other state, pertaining to the licensing of persons to operate motor vehicles within this state. See Tennessee Code 55-12-102
  • Motor vehicle: means every self-propelled vehicle that is designed for use upon the highway, including trailers and semitrailers designed for use with motor vehicles, and every vehicle that is propelled by electric power obtained from overhead wires but not operated upon rails, except traction engines, road rollers and farm tractors. See Tennessee Code 55-12-102
  • Nonresident: means every person who is not a resident of this state. See Tennessee Code 55-12-102
  • Operator: means :
    (A) For purposes of a conventionally operated vehicle, every person who is in actual physical control of a motor vehicle whether or not licensed as an operator or chauffeur under the laws of this state. See Tennessee Code 55-12-102
  • Owner: means a person who holds the legal title of a motor vehicle, or in the event a motor vehicle is the subject of an agreement for the conditional sale or lease thereof with the right of purchase upon performance of the conditions stated in the agreement and with an immediate right of possession vested in the conditional vendee or lessee, or in the event a mortgagor of a vehicle is entitled to possession, then the conditional vendee, lessee or mortgagor shall be deemed the owner for the purpose of this part. See Tennessee Code 55-12-102
  • Person: means a natural person, firm, copartnership, association, corporation, or an engaged ADS. See Tennessee Code 55-8-101
  • proof of financial security: means :
    (A)
    (i) If proof is required after December 31, 1989, but prior to January 1, 2009, such proof means:
    (a) A written proof of liability insurance coverage provided by a single limit policy with a limit of not less than sixty thousand dollars ($60,000) applicable to one (1) accident. See Tennessee Code 55-12-102
  • Property: includes both personal and real property. See Tennessee Code 1-3-105
  • State: means any state, territory or possession of the United States, the District of Columbia, or any province of the Dominion of Canada. See Tennessee Code 55-12-102
  • United States: includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
  • Vehicle: means every device in, upon or by which any person or property is or may be transported or drawn upon a highway, excepting devices used exclusively upon stationary rails or tracks. See Tennessee Code 55-8-101
  • written: includes printing, typewriting, engraving, lithography, and any other mode of representing words and letters. See Tennessee Code 1-3-105
(b) The following, and only the following, shall be acceptable proof of financial security:

(1) Filing of written proof of insurance coverage with the commissioner on forms approved by the commissioner;
(2) The deposit of cash with the commissioner of no less than the amount specified in § 55-12-102, or in the total amount of all damages suffered, whichever is less, subject to a minimum deposit of one thousand five hundred dollars ($1,500);
(3) The execution and filing of a bond with the commissioner of no less than the amount specified in § 55-12-102, or in the total amount of all damages suffered, whichever is less, subject to a minimum bond of one thousand five hundred dollars ($1,500); or
(4) The submission to the commissioner of notarized releases executed by all parties who had previously filed claims with the department as a result of the accident.
(c) Any notice of revocation issued under this section shall be sent by United States mail to the last known address of the operator and owner not less than twenty (20) days prior to the effective date of revocation, and shall state the amount required as security, and that the operator, owner, or both are entitled to an administrative hearing conducted by the commissioner of safety or the commissioner’s delegate pursuant to a request under § 55-12-103(a). Any request for an administrative hearing must be submitted in writing on or before the effective date of the proposed revocation.
(d) Notwithstanding this section to the contrary, if an accident results in damage to state or local government property in excess of four hundred dollars ($400), then this section shall apply, and if a deposit of cash or an execution and filing of a bond is made as proof of financial security, then the minimum security deposit or bond is five hundred dollars ($500).
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