After a brief research to double check the Chapter Law for RI DMV to suspend a license is listed under 31-1-7 and 31-32-2
31-32 is most applicable for the situation in your original question and is listed as follows.31-32-2 "Proof of financial responsibility for the future" defined. –
(a) "Proof of financial responsibility for the future", as used in this chapter, means proof of ability to respond in damages for liability, on account of accidents occurring subsequent to the effective date of the proof, arising out of the ownership, maintenance, or use of a vehicle of a type subject to registration under the laws of this state, in the amount of twenty-five thousand dollars ($25,000) because of bodily injury to or death of one person in any one accident, and, subject to the limit for one person, in the amount of fifty thousand dollars ($50,000) because of bodily injury to or death of two (2) or more persons in any one accident, and in the amount of twenty-five thousand dollars ($25,000) because of injury to or destruction of property of others in any one accident or seventy-five thousand dollars ($75,000) combined single limit.
(b) Wherever used in this chapter, "proof of financial responsibility" or "proof " is synonymous with the term "proof of financial responsibility for the future".
Other authority to suspend are as follows.31-11-7 Authority of division of motor vehicles to suspend license. –
(a) The division of motor vehicles is authorized to suspend the license of an operator or chauffeur without preliminary hearing upon a showing by its records or other sufficient evidence that the licensee:
(i) Has been adjudicated by a court of competent jurisdiction to have:
(A) Committed an offense for which mandatory revocation or suspension of license is required upon conviction or adjudication;
(B) Committed with such frequency of offenses against traffic regulations governing the movement of vehicles as to indicate a disrespect for traffic laws and a disregard for the safety of other persons on the highways;
(C) Been a reckless or negligent driver of a motor vehicle;
(D) Permitted an unlawful or fraudulent use of a license;
(E) Committed an offense in another state which, if committed in this state, would be grounds for suspension or revocation;
(F) Committed any offense enumerated in § 31-9-1;
(ii) Is the subject of an order issued pursuant to § 14-1-67; or
(iii) Poses an imminent safety risk to the general public as determined by the application of objectively ascertainable standards
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