(a) In the event that any person required to deposit security fails to deposit such security within 30 days from the date of mailing of notice as provided in Code Section 40-9-32 and such person does not make a timely request for a hearing, or in the event any person fails to deposit security after the department has determined that there exists a reasonable possibility of a judgment being rendered against such person, the department shall thereupon suspend:

(1) The driver's license of such person;

(2) The registration of all vehicles owned by such person which are subject to registration under the laws of this state; and

(3) If such person is a nonresident, the privilege of operating or permitting the operation of a vehicle within this state.

(b) The license and registration or nonresident's operating privilege shall remain so suspended and shall not be restored, nor shall any such license and registration be issued to such person, nor shall such nonresident's operating privilege be restored, until:

(1) Such person shall deposit or there shall be deposited on his behalf the security and proof of financial responsibility for the future as required by this chapter;

(2) One year shall have elapsed following the date of such suspension and evidence satisfactory to the department has been filed with it that during the period of suspension no action for damages arising out of the accident has been instituted; or

(3) Evidence satisfactory to the commissioner has been filed with him of a release from liability or a final adjudication of nonliability.