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(a) For purposes of this chapter, judgment refers only to a final judgment that is no longer appealable or has been finally affirmed on appeal and that was rendered by a court of any state, a province of Canada, or the United States on a cause of action:(1) for damages for bodily injury, death, or damage to or destruction of property arising out of the ownership, maintenance, or use of a motor vehicle; or(2) on an agreement of settlement for damages for bodily injury, death, or damage to or destruction of property arising out of the ownership, maintenance, or use of a motor vehicle.(b) For purposes of this chapter, a judgment is considered to be satisfied as to the appropriate part of the judgment set out by this subsection if:(1) the total amount credited on one or more judgments for bodily injury to or death of one person resulting from one accident equals or exceeds the amount required under Section 601.072(a)(1) to establish financial responsibility;(2) the total amount credited on one or more judgments for bodily injury to or death of two or more persons resulting from one accident equals or exceeds the amount required under Section 601.072(a)(2) to establish financial responsibility; or(3) the total amount credited on one or more judgments for damage to or destruction of property of another resulting from one accident equals or exceeds the amount required under Section 601.072(a)(3) to establish financial responsibility.(c) In determining whether a judgment is satisfied under Subsection (b), a payment made in settlement of a claim for damages for bodily injury, death, or damage to or destruction of property is considered to be an amount credited on a judgment.(d) For purposes of this section:(1) damages for bodily injury or death include damages for care and loss of services; and(2) damages for damage to or destruction of property include damages for loss of use. A person at a trial for damages may not refer to or offer as evidence of the negligence or due care of a party:(1) an action taken by the department under this chapter;(2) the findings on which that action is based; or(3) the security or evidence of financial responsibility filed under this chapter.

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(a) On receipt of a certification by the department that the operating privilege of a resident of this state has been suspended or revoked in another state or a province of Canada under a financial responsibility law, the department shall contact the official who issued the certification to request information relating to the specific nature of the resident's failure to comply.(b) Except as provided by Subsection (c), the department shall suspend the resident's driver's license and vehicle registrations if the evidence shows that the resident's operating privilege was suspended in the other state or the province for violation of a financial responsibility law under circumstances that would require the department to suspend a nonresident's operating privilege had the accident occurred in this state.(c) The department may not suspend the resident's driver's license and registration if the alleged failure to comply is based on the failure of the resident's insurance company or surety company to:(1) obtain authorization to write motor vehicle liability insurance in the other state or the province; or(2) execute a power of attorney directing the appropriate official in the other state or the province to accept on the company's behalf service of notice or process in an action under the policy arising out of an accident.(d) Suspension of a driver's license and vehicle registrations under this section continues until the resident furnishes evidence of compliance with the financial responsibility law of the other state or the province.(e) In this section, "financial responsibility law" means a law authorizing suspension or revocation of an operating privilege for failure to:(1) deposit security for the payment of a judgment;(2) satisfy a judgment; or(3) file evidence of financial responsibility.

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A person may not operate a motor vehicle in this state unless financial responsibility is established for that vehicle through:(1) a motor vehicle liability insurance policy that complies with Subchapter D;(2) a surety bond filed under Section 601.121;(3) a deposit under Section 601.122;(4) a deposit under Section 601.123; or(5) self-insurance under Section 601.124.

EXCEPTIONS TO FINANCIAL RESPONSIBILITY REQUIREMENT. (a) Section 601.051 does not apply to:(1) the operation of a motor vehicle that:(A) is a former military vehicle or is at least 25 years old;(B) is used only for exhibitions, club activities, parades, and other functions of public interest and not for regular transportation; and(C) for which the owner files with the department an affidavit, signed by the owner, stating that the vehicle is a collector's item and used only as described by Paragraph (B);(2) the operation of a neighborhood electric vehicle or a golf cart that is operated only as authorized by Section 551.304 or 551.403; or(3) a volunteer fire department for the operation of a motor vehicle the title of which is held in the name of a volunteer fire department.(b) Subsection (a)(3) does not exempt from the requirement of Section 601.051 a person who is operating a vehicle described by that subsection.(c) In this section:(1) "Former military vehicle" has the meaning assigned by Section 504.502(i).(2) "Volunteer fire department" means a company, department, or association that is:(A) organized in an unincorporated area to answer fire alarms and extinguish fires or to answer fire alarms, extinguish fires, and provide emergency medical services; and(B) composed of members who:(i) do not receive compensation; or(ii) receive only nominal compensation.

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