Michigan Compiled Laws, Chapter 257. Motor Vehicles § 257.528

Sec. 528. (1) The secretary of state shall upon request consent to the immediate cancellation of a bond or certificate of insurance, or the secretary of state shall direct and the state treasurer shall return to the person entitled to the money or securities, money or securities deposited pursuant to this chapter as proof of financial responsibility, or the secretary of state shall waive the requirement of filing proof, in any of the following events:

(2) The secretary of state shall not consent to the cancellation of a bond or the return of money or securities if an action for damages upon a liability covered by the proof is pending, a judgment upon the liability is unsatisfied, or if the person who has filed the bond or deposited the money or securities has within 1 year immediately preceding the request been involved as an operator or owner in a motor vehicle accident resulting in injury or damage to the person or property of others. A certification of the applicant as to the nonexistence of the facts described in this subsection, that the applicant has been released from liability, or has been finally adjudicated not to be liable for the injury or damage, shall be sufficient evidence of the nonexistence of those facts, in the absence of evidence to the contrary, in the records of the secretary of state.

(3) If a person whose proof has been canceled or returned under subsection (1)(c) applies for a license or registration within a period of 3 years from the date proof was originally required, the application shall be refused unless the applicant reestablishes the proof for the remainder of the 3-year period.