Such security shall be available for the following purposes:

1. (a) Payment of a final judgment or judgments in any amount for bodily injury or in excess of four hundred dollars ($400) for property damage, rendered against the owner or operator on whose behalf the deposit was made, for damages arising out of the accident in an action at law, begun not later than one year after the date of such accident.
2. (b) Payment of any settlement agreement covering any claim arising out of the accident.

3. (c) Payment of any final judgment rendered as a result of default under any duly acknowledged settlement agreement.

   Every distribution of funds from the security deposit shall be subject to the limits of the department’s evaluation on behalf of a claimant but not in excess of the maximum amounts provided in this part for bodily injury and for property damage.