The license and registration and nonresident's operating privilege suspended as provided in this section and section 60-507 shall remain so suspended and not be renewed nor shall any such license or registration be issued to such person until:

(1) Such person shall deposit and file or there shall be deposited and filed on his or her behalf the security and proof required under this section and section 60-507;

(2) A supersedeas bond is filed and approved to insure payment of any judgment recovered against such person in a court of competent jurisdiction arising out of the accident on account of which such license and registration was suspended and such person files proof of financial responsibility;

(3) Three years have elapsed following the date of such accident and evidence satisfactory to the department has been filed with it that during such period no action for damages arising out of such accident has been instituted and such person files proof of financial responsibility;

(4) Evidence satisfactory to the department has been filed with it of a release from liability, and proof of financial responsibility or a final adjudication of nonliability, or a warrant for confession of judgment, or a duly acknowledged written agreement, in accordance with subdivision (4) of section 60-510 and proof of financial responsibility. If there is any default in the payment of any installment under any confession of judgment, the department, upon notice of such default, shall suspend the license and registration or nonresident's operating privilege of such person defaulting which shall not be restored unless and until the entire amount provided for in the confession of judgment has been paid and proof of financial responsibility has been filed. If there is any default in the payment of any installment under any duly acknowledged written agreement, the department, upon notice of such default, shall suspend the license and registration or nonresident's operating privilege of such person defaulting which shall not be restored unless and until (a) such person deposits and maintains security as required under section 60-507, in such amount as the department determines, and files proof of financial responsibility or (b) one year has elapsed following the date when such security was required and during such period no action upon such agreement has been instituted in a court in this state and such person gives proof of financial responsibility; or

(5) In the event any insurance carrier of any motor vehicle operator makes settlement with the operator of another motor vehicle involved in the accident, such settlement shall, for the purpose of the Motor Vehicle Safety Responsibility Act, be construed as a release to the operators of all motor vehicles involved in the accident, and be sufficient to satisfy subdivision (4) of this section.