(a) If the agency determines that the motor vehicle the driver was driving at the time of the motor vehicle incident was not in compliance, the agency shall issue the assessment of a civil penalty in the amount of two hundred dollars ($200) for the first offense, three hundred dollars ($300) for a second offense, and four hundred dollars ($400) for a third or subsequent offense against the driver for failure to comply with the Mandatory Motor Vehicle Liability Insurance Law unless the motor vehicle is owned by any person, firm, association, or corporation licensed and engaged in the business of renting or leasing motor vehicles. The notice shall be sent by first class U.S. mail to the address in the records of the agency or otherwise available to the agency on a traffic citation or accident report. The notice shall state that the driver's license of the person will be suspended for 90 days if the person, within 45 days of the notice, does not either pay the assessment in a manner acceptable to the agency or appeal the assessment by filing a notice of appeal with the agency. If the person fails to pay the civil penalty or file an appeal as provided herein, the person's driver's license shall be suspended for 90 days and the civil penalty shall be final. Notwithstanding the foregoing, the agency may grant a person an extension to pay the civil penalty not to exceed 60 days if the person files a written settlement of the assessment.

(b) An assessment under the provisions of this article may not be made more than six months after a motor vehicle incident.