No license, registration or nonresident's operating privilege of any person shall be suspended under the provisions of this chapter if the Department shall find that an insurer was obligated to pay the judgment upon which suspension is based, at least to the extent and for the amounts required in this chapter, but has not paid such judgment for any reason. A finding by the Department that an insurer is obligated to pay a judgment shall not be binding upon such insurer and shall have no legal effect whatever except for the purpose of administering this section. Whenever in any judicial proceedings it shall be determined by any final judgment, decree or order that an insurer is not obligated to pay any such judgment, the Department, notwithstanding any contrary finding theretofore made by it, shall forthwith suspend the license and registration and any nonresident's operating privilege of any person against whom such judgment was rendered, as provided in Section 47-7-310.

Added by Laws 1961, HB 556, c. 10b, § 7-313, emerg. eff. July 28, 1961.