§ 31-31-12 - Agreements for payment of damages.
SECTION 31-31-12
§ 31-31-12 Agreements for payment ofdamages. – (a) Any two (2) or more of the persons involved in or affected by an accidentas described in § 31-31-4 may at any time enter into a written agreementfor the payment of an agreed amount with respect to all claims of the personsbecause of bodily injury to or death or property damage arising from theaccident. This agreement may provide for payment in installments, and may filea signed copy of it with the division of motor vehicles.
(b) The division of motor vehicles, to the extent provided bythe written agreement filed with it, shall not require the deposit of securityand shall terminate any prior order of suspension. If security has previouslybeen deposited, the division of motor vehicles shall immediately return thesecurity to the depositor or the depositor's personal representative.
(c) In the event of a default in any payment under theagreement and upon notice of the default, the division of motor vehicles shalltake action suspending the license or registration of the person in default aswould be appropriate in the event of failure of the person to deposit securitywhen required under this chapter.
(d) The suspension shall remain in effect and the license orregistration shall not be restored unless and until:
(1) Security is deposited as required under this chapter inthe amount that the division of motor vehicles may then determine, or
(2) When, following the default and suspension, the person indefault has paid the balance of the agreed amount, or
(3) Three (3) years have elapsed following the date of theaccident andoor occurrence, and evidence satisfactory to the division of motorvehicles has been filed with it that during the period no action at law uponthe agreement has been instituted and is pending.