N.Y. VAT Law § 353

§ 353. When commissioner may release proof. The commissioner shall\nupon request consent to the cancellation of any bond or insurance policy\nor return to the person entitled thereto any money or securities,\ndeposited pursuant to this article as proof of financial responsibility,\nor waive the requirement of filing proof of financial responsibility in\nany of the following events:\n (1) In the event of the death of the person on whose behalf such proof\nwas filed, or the permanent incapacity of such person to operate a motor\nvehicle; or\n (2) In the event the person who has given proof of financial\nresponsibility surrenders his operator's or chauffeur's license,\nregistration certificates and registration plates to the commissioner,\nbut the commissioner shall not release such proof in the event any\naction for damages upon a liability referred to in this article is then\npending, or any judgment upon any such liability then outstanding and\nunsatisfied, or in the event the commissioner has received notice that\nsuch person has within the period of three months immediately preceding\nbeen involved as a driver in any motor vehicle accident. An affidavit\nof the applicant of the non-existence of such facts shall be sufficient\nevidence thereof in the absence of evidence to the contrary in the\nrecords of the bureau.\n Whenever any person to whom proof has been surrendered, as provided in\nthis section, applies for an operator's or chauffeur's license or the\nregistration of a motor vehicle, any such application shall be refused\nunless the applicant shall reestablish such proof.\n